Skip to content

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

Under section 13(2), a supplier of taxable service issued an invoice of ₹50,000 and received ₹50,800, being ₹800 more than the invoiced amount. Which statement is correct about the time of supply for the excess ₹800?

For an excess of up to ₹1,000 over the invoiced amount, such as ₹800, the supplier may opt to treat the date of issue of the invoice relating to that excess as the time of supply for that portion, as the proviso to section 13(2) allows.

  1. AIt must always be the date of receipt of the excess payment
  2. BAt the supplier's option, it is the date of issue of the invoice relating to the excess amountCorrect
  3. CIt is the date of provision of service, with no option
  4. DIt is the date on which the recipient records it in his books

Explanation

The proviso to section 13(2) applies where excess received is up to one thousand rupees over the invoiced amount. The excess of ₹800 is within this limit, so the supplier may opt for the date of issue of invoice relating to that excess. The receipt date is the default only if the option is not exercised.

Did you get it right without looking?

One question tells you little. A timed set on Supply under GST shows your real accuracy, how long you take and where you lose marks.

Practise Supply under GSTFree diagnostic mock

More Supply under GST questions