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

Under the CGST Act, 2017, for supply of goods on which tax is payable under reverse charge, the time of supply is the earliest of certain dates. Which of the following is one of those dates?

For reverse charge supply of goods, the time of supply is the earliest of the receipt of goods, the payment date, or the date immediately following thirty days from the supplier's invoice. The sixty-day rule belongs to services, not goods.

  1. AThe date immediately following sixty days from the date of issue of the supplier's invoice
  2. BThe date immediately following thirty days from the date of issue of the supplier's invoiceCorrect
  3. CThe date of dispatch of goods by the supplier
  4. DThe date of filing of the recipient's GSTR-3B for the month of receipt

Explanation

For goods under reverse charge, the earliest of the date of receipt of goods, the date of payment (books or bank debit, whichever is earlier), and the date immediately following thirty days from the date of the supplier's invoice applies. The sixty-day period applies to services, so it is the key distractor.

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