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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Time of Supply

Under Section 12 of the CGST Act, 2017, the time of supply of goods under forward charge (other than vouchers or residual cases) is the:

The time of supply of goods under forward charge is the earlier of the invoice date (or the last date by which the invoice must be issued) and the date the supplier receives payment, as provided in Section 12(2) of the CGST Act.

  1. ALater of the date of invoice and the date of receipt of payment
  2. BDate of delivery of goods to the recipient in every case
  3. CEarlier of the date of issue of invoice (or last date for issuing it) and the date the supplier receives paymentCorrect
  4. DDate on which the supplier files the periodical return for the month

Explanation

Section 12(2) fixes the time of supply of goods as the earlier of two dates. The first is the date of issue of invoice, or the last date by which the invoice is required to be issued. The second is the date the supplier receives payment. The 'later of' option reverses the rule, and the return-filing date applies only where the time of supply cannot otherwise be determined.

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