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CA Intermediate · Taxation · Time of Supply

Under the CGST Act, 2017, which of the following correctly states the time of supply in case of a supply of vouchers?

The time of supply of vouchers is the date of issue of the voucher if the supply is identifiable at that point, and otherwise the date of redemption. It therefore depends on whether the underlying supply can be identified when the voucher is issued.

  1. ADate of issue of voucher if the supply is identifiable at that point; otherwise the date of redemption of voucherCorrect
  2. BAlways the date of redemption of voucher
  3. CAlways the date of issue of voucher
  4. DThe date of the first sale of the voucher by a distributor, whether or not the supply is identifiable

Explanation

For vouchers, the time of supply is the date of issue of the voucher if the supply is identifiable at that point. If it is not identifiable at the time of issue, the time of supply is the date of redemption of the voucher. So neither 'always issue' nor 'always redemption' is correct, and the distributor's sale date is not the test.

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