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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 Rs. 800 more than the amount shown in the tax invoice. For the excess amount, what is the time of supply?

Because the excess of Rs. 800 is within the Rs. 1,000 limit, the supplier may choose the date of issue of invoice for the excess amount as its time of supply. The receipt date is not compulsory under the proviso to section 12(2).

  1. AAlways the date on which the excess amount is received
  2. BAt the supplier's option, the date of issue of invoice in respect of such excess amountCorrect
  3. CAlways the date of delivery of the goods
  4. DThe date on which the periodical return is filed

Explanation

The proviso to section 12(2) says that where the supplier receives an amount up to Rs. 1,000 in excess of the invoice amount, the time of supply for the excess is, at the supplier's option, the date of issue of invoice for that excess. Rs. 800 is within the limit. Receipt date is not compulsory, so the first option is wrong.

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