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CS Executive · Tax Laws and Practice · Time, Value and Place of Supply

Under the CGST Act, 2017, for a forward-charge supply of services, the time of supply is the earliest of certain dates. Which of the following is treated as the date of receipt of payment for this purpose?

The date of receipt of payment is the date on which the payment is entered in the supplier's books of account or credited to his bank account, whichever is earlier. Cheque issue by the recipient, contract signing and return filing do not determine this date.

  1. AThe date on which the payment is entered in the supplier's books or credited to his bank account, whichever is earlierCorrect
  2. BThe date on which the recipient issues the cheque to the supplier
  3. CThe date on which the service contract is signed between the parties
  4. DThe date on which the supplier files the periodical return for that month

Explanation

The Explanation to section 13(2) states that the date of receipt of payment is the date the payment is entered in the supplier's books of account or credited to his bank account, whichever is earlier. The date of the recipient issuing a cheque is not relevant, and neither contract signing nor return filing fixes the receipt date.

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