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CA Final · Indirect Tax Laws · Time of Supply

Vindhya Infra Ltd, a registered person, receives goods from an unregistered supplier, on which tax is payable under reverse charge. The goods were received on 14 September, the supplier's invoice is dated 2 September, and Vindhya paid the supplier on 25 September, entering it in books the same day. What is the time of supply of goods under section 12(3) of the CGST Act, 2017?

The time of supply is 14 September. For reverse charge supplies of goods, the earliest of the receipt of goods, the payment date and the day after thirty days from the supplier's invoice applies. Receipt on 14 September precedes payment on 25 September and the thirty-day date, so it governs.

  1. A2 September, being the date of the supplier's invoice
  2. B14 September, being the date of receipt of goodsCorrect
  3. C25 September, being the date of payment
  4. D2 October, being the date immediately following thirty days from the invoice date

Explanation

For reverse charge supply of goods, the time of supply is the earliest of: date of receipt of goods (14 September), date of payment (25 September), and the day after thirty days from invoice (2 October, since 30 days from 2 September ends 2 October, and the next day is 3 October). The earliest is 14 September. The invoice date itself is not a trigger in clause (a), (b) or (c).

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