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

Under section 13(2) of the CGST Act, 2017, a supplier of taxable services receives Rs 800 more than the amount shown in the tax invoice. Which statement is correct about the time of supply for this excess amount?

At the supplier's option, the time of supply for the excess is the date of issue of the invoice relating to that excess. This applies because the excess received, Rs 800, does not exceed Rs 1,000. The relief is optional, not mandatory.

  1. AAt the supplier's option, it is the date of issue of the invoice relating to the excess amountCorrect
  2. BIt is compulsorily the date of receipt of the excess amount
  3. CIt is the date on which the recipient shows the services in his books
  4. DIt is always the date of the original invoice

Explanation

The proviso to section 13(2) covers an excess amount of up to Rs 1,000 over the invoice amount. For that excess, the supplier may choose the date of issue of the invoice relating to it as the time of supply. Rs 800 is within the limit, so the option is available, and it is not compulsory.

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