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CMA Final · Indirect Tax Laws and Practice · Time of Supply

Under section 12 of the CGST Act, 2017, a supplier of taxable goods receives an amount in excess of the amount shown in the tax invoice. For what maximum excess amount may the supplier opt to treat the date of issue of invoice for that excess amount as its time of supply?

The limit is Rs. 1,000. Where the supplier receives up to one thousand rupees more than the tax invoice amount, the supplier may opt for the invoice issue date as the time of supply for that excess amount, instead of the date of payment.

  1. AUp to Rs. 500
  2. BUp to Rs. 1,000Correct
  3. CUp to Rs. 5,000
  4. DUp to 1% of the invoice value

Explanation

The proviso to section 12(2) allows a supplier who receives up to one thousand rupees in excess of the invoice amount to choose the date of issue of invoice for that excess as the time of supply. The relief is a fixed rupee limit, not a percentage of invoice value.

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