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CMA Intermediate · Direct and Indirect Taxation · Time and Value of Supply

Under Section 12(2) of the CGST Act, 2017, the time of supply of goods (forward charge) is the earlier of two dates. Which pair correctly describes them?

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 laid down in Section 12(2) of the CGST Act.

  1. ADate of delivery of goods or date of receipt of payment by the buyer
  2. BDate of issue of invoice, or the last date by which the invoice is required to be issued, and the date the supplier receives paymentCorrect
  3. CDate of the purchase order and date of dispatch of goods
  4. DDate of filing the GSTR-1 return and date of payment of tax

Explanation

Section 12(2) fixes the time of supply of goods as the earlier of (a) the date of issue of invoice or the last date on which the invoice is required to be issued, and (b) the date on which the supplier receives the payment. Delivery, order date or return date are not the statutory triggers under this sub-section.

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