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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Time of Supply

Under the forward charge, the time of supply of goods under section 12(2) of the CGST Act, 2017 is:

The time of supply of goods under forward charge is the earlier of the invoice date, or the last date by which the invoice must be issued, and the date the supplier receives payment. It is not the later date, nor the delivery date.

  1. AThe earlier of the date of issue of invoice (or the last date by which it is required to be issued) and the date of receipt of paymentCorrect
  2. BThe later of the date of issue of invoice and the date of receipt of payment
  3. CThe date of delivery of goods to the recipient in every case
  4. DThe date on which the supplier files the periodical return for that period

Explanation

Section 12(2) fixes the time of supply of goods as the earlier of two dates: the invoice date (or the last date on which the invoice is required to be issued) and the date the supplier receives payment. The 'later of' option reverses the rule. Delivery date and return filing date are not the primary tests; the return date applies only as a fallback when time cannot be determined.

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