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

Under the CGST Act, 2017, the time of supply of goods in a normal forward-charge case is the earlier of which two dates?

The time of supply of goods is the earlier of the date of issue of the invoice, or the last date by which the invoice must be issued, and the date the supplier receives payment. These are the statutory triggers under section 12(2), not removal or contract dates.

  1. ADate of issue of invoice (or last date by which it is required to be issued) and date on which the supplier receives paymentCorrect
  2. BDate of removal of goods and date of delivery to the recipient
  3. CDate of the contract and date of receipt of goods by the recipient
  4. DDate of filing the periodic return and date of tax payment

Explanation

Section 12(2) fixes the time of supply of goods at the earlier of the invoice date (or the last date on which the invoice is required to be issued) and the date the supplier receives payment. Removal, delivery or contract dates are not the statutory triggers. Return filing and tax payment dates apply only under the residual rule in section 12(5).

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