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CMA Final · Indirect Tax Laws and Practice · Time of Supply

Under section 13(3) of the CGST Act, 2017, for a reverse charge supply of services where the invoice is to be issued by the supplier, Anand Traders (recipient) receives the invoice dated 12 June and makes no payment before then. Ignoring the proviso, the time of supply is the earlier of the payment date or:

For reverse charge services with a supplier invoice, the time of supply is the earlier of the recipient's payment date or the date immediately following sixty days from the invoice date. The thirty-day period belongs to goods, not services.

  1. AThe date immediately following thirty days from the invoice date
  2. BThe date immediately following sixty days from the invoice dateCorrect
  3. CThe date of receipt of the service
  4. DThe date on which the tax is paid

Explanation

For reverse charge services section 13(3)(b) uses the date immediately following sixty days from the date of issue of the supplier's invoice. The thirty-day period applies to goods under section 12(3)(c), so it is wrong here.

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