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CS Executive · Tax Laws and Practice · Time, Value and Place of Supply

The rate of GST changed on 1 April. Goods were supplied before 1 April. The invoice was issued after 1 April and the payment was also received after 1 April. What is the time of supply under section 14 of the CGST Act, 2017?

The time of supply is the earlier of the invoice date and the payment date. The goods were supplied before the rate change, but both invoice and payment happened after it, so the earlier of those two events fixes the time of supply.

  1. ADate of supply of the goods
  2. BDate of rate change
  3. CLater of invoice date and payment date
  4. DEarlier of invoice date and payment dateCorrect

Explanation

Where goods are supplied before the change but both the invoice and the payment fall after the change, the time of supply is the date of receipt of payment or date of issue of invoice, whichever is earlier. The later date is wrong because the provision selects the earlier event.

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