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

Under the CGST Act, 2017, which statement correctly describes the effect of Section 14 on determining the time of supply?

Section 14 applies only when the rate of tax on goods or services changes, and in that situation it overrides the general time of supply rules in sections 12 and 13. It covers goods and services, and the time of supply depends on the invoice and payment dates.

  1. AIt applies only where the rate of tax changes and overrides the general time of supply rules for goods and services in sections 12 and 13Correct
  2. BIt applies to every supply, whether or not the rate changes, in place of sections 12 and 13
  3. CIt applies only to services and not to goods
  4. DIt applies only where the rate changes and requires the time of supply always to be the date of invoice

Explanation

Section 14 begins with 'Notwithstanding anything contained in section 12 or section 13' and applies where there is a change in the rate of tax for goods or services or both. It therefore overrides the general rules only in rate-change cases. It is not confined to services, and the invoice date is not always the time of supply; for example, in some cases the payment date applies.

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