QUESTION 1

A machine has to be supplied at site. It is done by sourcing various components from vendors
and assembling the machine at site. The details of the various events are:

17th September Purchase order with advance of INR 50,000

is received for goods worth INR 12 lakh and
entry duly made in the seller’s books of
account

20th October The machine is assembled, tested at site, and

accepted by buyer

23rd October Invoice raised

4th November Balance payment of INR 11,50,000 received

Answer
As per Notification No. 66/2017 CT, a registered person (excluding composition supplier)
has to pay GST on the outward supply of goods at the time of supply as specified in
section 12(2)(a) i.e., date of issue of invoice or the last date on which invoice ought to
have been issued in terms of section 31.
Therefore, the time of supply of goods for the entire amount of INR 12,00,000 is 20th
October which is the date on which the goods were made available to the recipient as per
section 31(1)(b), and the invoice should have been issued on this date [Section 12(2)(a)].

QUESTION 2
Gas is supplied by a pipeline to the recipient. The supply is to be made for a period of one year.
Monthly payments are to be made by the recipient as per the contract. The details of the
payment made are:

July 5, August 5, September 5 Payments of ₹ 2 lakh made in each month

Determine the time of supply for the purpose of payment of tax.

ANSWER
As per Notification No. 66/2017 CT, a registered person (excluding composition supplier)
has to pay GST on the outward supply of goods at the time of supply as specified in
section 12(2)(a), i.e. date of issue of invoice or the last date on which invoice ought to
have been issued in terms of section 31.
As per section 31(4), in case of continuous supply of goods, where successive
statements of accounts or successive payments are involved, the invoice is issued
before or at the time of each such statement is issued or, as the case may be, each such
payment is received. Therefore, invoices should be issued for INR 2 lakh each on or
before July 5, August 5 and September 5, when monthly payments of INR 2 lakh are
received.
Thus, assuming that the invoice is issued on July 5, August 5 and September 5, the time
of supply for the purpose of payment of tax will be July 5, August 5 and September 5
respectively for goods valued at INR 2 lakh each.

QUESTION 3
Determine the time of supply from the given information.

May 4 Supplier invoices goods taxable on reverse charge basis to Tax Limited (30 days
from the date of issuance of invoice elapse on June 3)

May 12 Tax Limited receives the goods

May 30 Tax Limited makes the payment

Answer
Here, May 12 will be the time of supply, being the earliest of the three stipulated dates
namely, receipt of goods, date of payment and date immediately following 30 days of
issuance of invoice [Section 12(3)]. (Here, date of invoice is relevant only for calculating
thirty days from that date.)

Question 4
Determine the time of supply from the given information.

May 4 Supplier invoices goods taxable on reverse charge basis to Tax Limited (30 days
from the date of issuance of invoice elapse on June 3)

June 12 Tax Limited receives the goods, which were held up in transit

July 3 Payment made for the goods

Answer
Here, June 4, 31st day from the date of supplier’s invoice, will be the time of supply,
being the earliest of the three stipulated dates namely, receipt of goods, date of payment
and date immediately following 30 days of issuance of invoice [Section 12(3)].

Question 5
Determine the time of supply from the following particulars:

6 May Booking of convention hall, sum agreed INR 15,000, advance of INR 3,000
received

15 Sep Function held in convention hall

27 Oct Invoice issued for INR 15,000, indicating balance of INR 12,000 payable
 3 Nov Balance payment of INR 12,000 received

Answer
As per section 31 read with Rule 47 of CGST Rules, the tax invoice is to be issued within
30 days of supply of service. In the given case, the invoice is not issued within the
prescribed time limit.
As per section 13(2)(b), in a case where the invoice is not issued within the prescribed
time, the time of supply of service is the date of provision of service or receipt of
payment, whichever is earlier.
Therefore, the time of supply of service to the extent of INR 3,000 is 6th May as the date
of payment of INR 3,000 is earlier than the date of provision of service. The time of
supply of service to the extent of the balance INR 12,000 is 15th September which is the
date of provision of service.

Question 6
Investigation shows that ABC & Co carried out service of cleaning and repairs of tanks in an
apartment complex, for which the Apartment Owners’ Association showed a payment in cash on
4th April to them against work of this description. The dates of the work are not clear from the
records of ABC & Co. ABC & Co have not issued invoice or entered the payment in their books
of account. Determine Time of Supply of service.

Answer
The time of supply cannot be determined vide the provisions of clauses (a) and (b) of
section 13(2) as neither the invoice has been issued nor the date of provision of service
is available as also the date of receipt of payment in the books of the supplier is also not
available. Therefore, the time of supply will be determined vide clause (c) of section 13(2)
i.e., the date on which the recipient of service shows receipt of the service in his books
of account.
Thus, time of supply will be 4th April, the date on which the Apartment Owners’
Association records the receipt of service in its books of account.

Question 7
Determine the time of supply from the given information. (Assuming that service being supplied
is taxable under reverse charge)

May 4 The supplier of service issues invoice for service provided. There is a dispute
about amount payable, and payment is delayed.

August 21 Payment made to the supplier of service

Answer
Here, July 4 will be the time of supply, being the earliest of the two stipulated dates
namely, date of payment and date immediately following 60 days since issue of invoice.

Question 8
Determine the time of supply from the given information.

May 4 A German company issues email informing its associated company ABC Ltd. of
the cost of technical services provided to it.

July 2 ABC Ltd transfers the amount to the account of the German company

Answer
As there is no prior entry of the amount in the books of account of ABC Ltd., July 2 will
be the time of supply, being the date of payment in terms of second proviso to section
13(3).

Question 9
Explain the significance of time of supply under GST law.

Answer
GST is payable on supply of goods or services. Time of supply indicates the point in time
when the liability to pay tax arises.
However, it is important to note that though the liability to pay tax arises at the time of
supply, the same can be paid to the Government by the due date prescribed with
reference to the said ‘time of supply’. The CGST Act provides separate provisions for
time of supply for goods and services vide sections 12 and 13.

Question 10
GST is payable on advance received for supply of goods and services taxable under forward
charge. Do you agree with the statement? Support your Solution with legal provisions.

Answer
The statement is not correct. While GST is payable on advance received for supply of
services taxable under forward charge, the same is not payable in case of advance
received for supply of goods taxable under forward charge.
As per section 13, the time of supply of services taxable under forward charge is-

a) Date of issue of invoice or date of receipt of payment, whichever is earlier, if the

same is issued within 30 days from the date of supply of service;

or
b) Date of provision of service or date of receipt of payment, whichever is earlier, if
the invoice is not issued within 30 days from the date of supply of service.
Thus, in case of services, if the supplier receives any payment before the provision of
service or before the issuance of invoice for such service, the time of supply gets fixed at
that point in time and the liability to pay tax on such payment arises. However, the tax
can be paid by the due date prescribed with reference to such time of supply.
As regards time of supply of goods taxable under forward charge is concerned,
Notification No. 66/2017 CT provides that a registered person (excluding composition
supplier) should pay GST on the outward supply of goods at the time of supply as
specified in section 12(2)(a), i.e. date of issue of invoice or the last date on which invoice
ought to have been issued in terms of section 31.
Therefore, in case of goods, tax is not payable on receipt of advance payment.

Question 11
Determine the time of supply in the following cases assuming that GST is payable under
Reverse Charge.

Sl [Link] Date of Receipt Date of Date of issue of Time of

of goods payment by invoice by the supply of
the recipient of supplier of goods
goods goods

1 July 1 August 10 June 29 July 1

2 July 1 June 25 June 29 June 25

3 July 1 Part payment June 29 For part

made on June payment
30 and balance June 30 and
amount paid
for balance
on July 20
July 1

4 July 5 Payment is June 1 June 28

entered in the
books of
account on
June 28 and
debited in
recipient’s
bank account
on June 30

5 July 1 Payment is June 29 June 26

entered in the
books of
account on
June 30 and
debited in
recipient’s
bank account
on June 26

6 Aug 1 Aug 10 June 29 July 30

Question 12

S No. Date of payment Date of issue of Time of Supply

by the recipient invoice by the of Service
for supply of supplier of
services services

1 August 10 June 29 Aug 10

2 August 10 June 1 Aug 1

3 Part payment June 29 June 30 for part

made on June payment and
30 and balance Aug 29 for
amount paid on balance
September 1 amount

4 Payment is June 1 June 28

entered in the
books of account
on June 28 and
debited in
recipient’s bank
account on June
30

5 Payment is June 29 June 26

entered in the
books of account
on June 30 and
debited in
recipient’s bank
account on June
26

Question 13

Kabira Industries Ltd engaged the services of a transporter for road transport of a consignment
on 17th June and made advance payment for the transport on the same date, i.e., 17th June.
However, the consignment could not be sent immediately on account of a strike in the factory,
and instead was sent on 20th July. Invoice was received from the transporter on 22nd July.
What is the time of supply of the transporter’s service?

Answer
Time of supply of service taxable under reverse charge is the earlier of following two
dates in terms of section 13(3):
a) Date of payment
b) 61st day from the date of issue of invoice.
In this case, the date of payment precedes 61st day from the date of issue of invoice by
the supplier of service. Hence, the date of payment, that is 17th June, will be treated as
the time of supply of service [Section 13(3)(a)].

Question 14
Raju Pvt. Ltd. receives the order and advance payment on 5th January for carrying out an
architectural design job. It delivers the designs on 23rd April. By oversight, no invoice is issued
at that time, and it is issued much later, after the expiry of prescribed period for issue of invoice.
When is the time of supply of service?

Answer
Since the invoice has not been issued within the prescribed time period, time of supply
of service will be earlier of the following two dates in terms of section 13:
a) Date of provision of service
b) Date of receipt of payment.
The payment was received on 5th January and the service was provided on 23rd April.
Therefore, the date of payment, i.e. 5th January is the time of supply of the service in this
case.

Question 15
Investigation shows that 150 cartons of ceramic capacitors were dispatched on 2nd August but
no invoice was made and the cartons were not entered in the accounts. There was no evidence
of receipt of payment.
What is the time of supply of 150 cartons for the purpose of payment of tax?

Answer
As per Notification No. 66/2017 CT, a registered person (excluding composition supplier)
has to pay GST on the outward supply of goods at the time of supply as specified in
section 12(2)(a).
As per section 12 of CGST Act, Time of supply of goods is the earlier of following two
dates:
a) Date of issue of invoice
b) last date on which the invoice is required to be issued u/s 31.
In this case, since the invoice has not been issued, the time of supply will be the last date
on which the invoice is required to be issued or date of receipt of payment, whichever is
earlier.
The invoice for supply of goods must be issued on or before the dispatch of goods i.e.
on 2nd august, the date when the invoice should have been issued.

Question 16
An order is placed on Ram & Co. on 18th August for supply of a consignment of customized
shoes. Ram & Co. gets the consignment ready and informs the customer and issues the invoice
on 2nd December. The customer collects the consignment from the premises of Ram & Co. on
7th December and electronically transfers the payment on the same date, which is entered in
the accounts on the next day, 8th December.
What is the time of supply of the shoes for the purpose of payment of tax?

Answer
As per Notification No. 66/2017 CT, a registered person (excluding composition supplier)
has to pay GST on the outward supply of goods at the time of supply as specified in
section 12(2)(a).
As per section 12 of CGST Act, Time of supply of goods is the earlier of following two
dates:
a) Date of issue of invoice
b) last date on which the invoice is required to be issued u/s 31.
In this case, the invoice is issued before the removal of the goods and is thus, within the
time limit prescribed under section 31(1). Therefore, time of supply is the date of issue of
invoice, which is 2nd December.

Question 17
Meal coupons are sold to a company on 9th August for being distributed to the employees of the
said company. The coupons are valid for six months and can be used against purchase of food
items. The employees use them in various stores for purchases of various edible items on
different dates throughout the six months.
What is the date of supply of the coupons?

Answer
As the coupons can be used for a variety of food items, which are taxed at different rates
the supply cannot be identified at the time of purchase of the coupons. Therefore, the
time of supply of the coupons is the date of their redemption in terms of section 12(4).

Question 18
A firm of advocates issues invoice for services to ABC Ltd. on 17th Feb. The payment is
contested by ABC Ltd. on the ground that on account of negligence of the firm, the company’s
case was dismissed by the Court for non-appearance, which necessitated further appearance
for which the firm is billing the company. The dispute drags on and finally payment is made on
3rd November.
Identify the time of supply of the legal services.

Answer
Tax on services supply by a firm of advocates by way of legal services to any business
entity is payable under reverse charge by such business entity.
Time of supply of services under reverse charge is earliest of the following two dates in
terms of section 13(3):
a) Date of payment [3rd November]
b) 61st day from the date of issue of invoice [19th April].
The date of payment comes subsequent to the 61st day from the issue of invoice by the
supplier of service. Therefore, the 61st day from supplier’s invoice has to be taken as the
time of supply. This fixes 19th April as the time of supply.

Question 19
Modern Security Co. provides service of testing of electronic devices. In one case, it tested a
batch of devices on 4th and 5th September but could not raise invoice till 19th November
because of some dispute about the condition of the devices on return. The payment was made
in December.
What is the method to fix the time of supply of the service?

Answer
The time of supply of services, if the invoice is not issued in time, is the date of payment
or the date of provision of service, whichever is earlier (Section 13).
In this case the service is provided on 5th September but not invoiced within the
prescribed time limit. Therefore, the date of provision of service, i.e. 5th September but
not invoiced within the prescribed time limit. Therefore, the date of provision of service,
i.e. 5th September, will be the time of supply

Question 20
M/s XYZ & Co., a firm of Chartered Accountants, issued invoice for services rendered to Mr. A
on 7th September. Determine the time of supply in the following independent cases:
a) The provision of service was completed on 1st August and payment was received on 28th
September.
b) The provision of service was completed on 14th August and payment was received on 28th
September.
c) Mr. A made the payment on 3rd August. However, service was remaining to be completed at
that time.
d) Mr. A made the payment on 15th September. However, service was remaining to be
completed at that time.

Answer
In case the invoice is issued within 30 days from the date of supply of service, time of
supply of services is the date of issue of invoice OR the date of receipt of payment,
whichever is earlier [Section 13(2)(a)].
In case the invoice is not issued within 30 days from the date of supply of service, time of
supply is the date of provision of service OR the date of receipt of payment, whichever is
earlier [Section 13(2)(b)].
In accordance with the aforesaid provisions, the time of supply in the four independent
cases will be
a) 1st August since the invoice is not issued within 30 days of supply of service
b) 7th September since the invoice is issued within 30 days of supply of service and the
payment is received after the issuance of invoice
c) 3rd August viz., earlier of date of issuance of invoice (7th September) or date of receipt
of payment (3rd August)
d) 7th September viz., earlier of date of issuance of invoice (7th Sept) or date of receipt of
payment (15th Sept).

Question 21
M/s Pranav Associates, a partnership firm, provided recovery agent services to Newtron Credits
Ltd., a NBFC and a registered supplier, on 15th January. Invoice for the same was issued on
7th February and the payment was made on 18th April by Newtron Credits Ltd. Bank account of
the company was debited on 20th April.
Determine the following:
a) Person liable to pay GST
b) Time of supply of service.

Answer
a) Tax on services supplied by a recovery agent to, inter alia, a non-banking financial
company (NBFC) is payable under reverse charge by such non-banking financial
company.
Therefore, in the given case, person liable to pay GST is the NBFC - Newton Credits Ltd.
b) As per section 13(3), time of supply of service on which GST is payable under RCM is
earlier of following:
▪ Date of payment as entered in the books of account of the recipient (18th April) or the
date on which the payment is debited in his bank account (20th April), whichever is
earlier;
▪ Date immediately following 60 days since issue of invoice by the supplier, i.e., 9th April.
Thus, time of supply of service is 9th April.

Question 22
Mr. X supplied goods for ₹ 50,000 to its customer Miss Diyana on 1st January on the condition
that payment for the same will be made within a week. However, Miss Diyana made payment
for the said goods on 2nd February and thus, paid interest amounting to ₹ 2,000.
What is the time of supply with regard to addition in the value by way of interest in lieu of
delayed payment of consideration?

Answer
As per section 12(6), the time of supply with regard to an addition in value on account of
interest, late fee or penalty or delayed payment of consideration is the date on which the
supplier received such additional consideration.
Thus, time of supply in respect of interest would be the date on which the supplier has
received such additional consideration, i.e. 2nd February.

Question 23
M/s Mansh & Vansh Trading Company, a registered supplier, is liable to pay GST under forward
charge. It has furnished the following information:
a) Goods were supplied on 3rd October
b) Invoice was issued on 5th October
c) Payment received on 9th October
Determine the time of supply of goods for the purpose of payment of tax

Answer
As per Notification No. 66/2017 CT, a registered person (excluding composition supplier)
has to pay GST on the outward supply of goods at the time of supply as specified in
section 12(2)(a), i.e., date of issue of invoice or the last date on which invoice ought to
have been issued in terms of section 31.
Further, a registered person is required to issue a tax invoice before or at the time of
removal of goods for supply to the recipient. Thus, in the given case, the invoice for
supply of goods should have been issued on or before the removal of goods i.e., on 3rd
October.
However, since the invoice has not been issued within the prescribed time, the time of
supply for the purpose of payment of tax will be the last date on which the invoice is
required to be issued i.e., 3rd October.

Question 24
R, a registered person, supplies goods to G on 12.10.2021 on approval or return basis. G gives
his approval to the goods on 22.12.2021.
a) What is the time prescribed for issue of tax invoice?
b) What will be the Solution if approval is given by G on 22.05.2022 instead of 22.12.2021?

Answer
a) As per section 31 of CGST Act, 2017, the invoice should be issued
a) on or before 22.12.2021 i.e., the time of approval of supply or
b) on 11.4.2022 i.e., 6 months from the date of removal
Whichever is earlier.
Therefore, the invoice should be issued on 22.12.2021.
b) In this case, 6 Months from the date of removal ends on 11.4.2022 i.e., before the time
of approval of supply on 22.5.2022. Therefore, the invoice should be issued on 11.4.2022.

Question 25
G, a chartered accountant in practice, enters into an agreement on 01.11.20XX with X Ltd. to
provide consultancy services for a period of one year for a fee of INR 5,00,000. The due date of
payment is 10th of every month. The first payment becoming due on 10.12.20XX.
What is the time prescribed for issue of tax invoice?

Answer
This is the case of continuous supply of services. As per section 31 of CGST Act, 2017,
since the due date of payment is ascertainable from the agreement, tax invoice should be
issued on or before the due date of payment i.e., 10th of every month starting from
11.12.20XX.
In the above case, if the due date of payment is not ascertainable, the invoice will be
raised at the time he receives the payment.

Question 26
On 01.12.20XX, R agrees to supply commercial training and coaching services to G on daily
basis for a period of three months. However, after 45 days, due to some unavoidable reason,
aforesaid service could not be supplied by R.
When shall the invoice be issued in this case?

Answer
In the above Concept Problem, there is a cessation of supply of services before the
completion of supply. As per section 31 of CGST Act, 2017, R shall be required to issue
the invoice at the time when the supply ceases. Further, such invoice shall be issued to
the extent of supply made for 45 days only.

Question 27
R Ltd. is engaged in supply of two different taxable services namely gym services and hair
treatment services. It issues vouchers of INR 12,000 to G on 12.1.20XX. The said voucher can
be redeemed within two months from the date of such voucher for either of two aforesaid
services or partly for each of the two aforesaid services. R redeems the said voucher on
14.3.20XX for hair treatment service only.

Answer
As per section 13 of CGST Act, 2017, the time of supply shall be 14.3.20XX i.e., the date
of redemption of voucher because voucher is not identifiable with a particular supply at
the time of issuance of voucher. Accordingly, in the given case, GST rate applicable in
case of hair treatment services shall apply.

Question 28
Gupta & Sons, a registered supplier, paying tax under normal scheme is wholesale supplier of
ready-made garments located in Bandra, Mumbai. On 5th September, 20XX, Mohini, owner of
Charming Boutique located in Dadar, Mumbai, approached Gupta & Sons for supply of a
consignment of customised dresses for ladies and kids.
Gupta & Sons gets the consignment ready by 2nd December, 20XX and informs Mohini about
the same. The invoice for the consignment was issued the next day, 3rd December, 20XX.
Due to some reasons, Mohini could not collect the consignment immediately. So, she collects
the consignment from the premises of Gupta & Sons on 18th December, 20XX and hands over
the cheque for payment on the same date. The said payment is entered in the accounts on 20th
December, 20XX and amount is credited in the bank account on 21st December, 20XX.
You are required to determine the time of supply of the readymade garments supplied by Gupta
& Sons to Mohini elaborating the relevant provisions under the GST law.

Answer
As per Notification No. 66/2017 CT, a registered person (excluding composition supplier)
has to pay GST on the outward supply of goods at the time of supply as specified in
section 12(2)(a) of CGST Act, 2017 i.e., date of issue of invoice or the last date on which
invoice ought to have been issued in terms of section 31.
Date of Invoice - 3rd December
Last date on which invoice ought to have been issued – 18th December
Therefore, the time of supply of goods is 3rd December which is the date on which the
invoice for the consignment was issued.

Question 29
Explain the meaning of the term “date of receipt of payment” as per section 13 of the CGST Act,
2017.

Answer
“Date of receipt of payment” in terms of section 13 of CGST Act, 2017 refers to the
a) date on which the payment is recorded in the books of account of the entity (supplier
of service) that receives the payment, or
b) the date on which the payment is credited to the entity’s bank account,
whichever is earlier.

Question 30
Know & Grow Publishers, a registered dealer in India, paid an advance of INR 50,000 to Mr.
Ganatra, an author, for the copyright covered under Section 13(1)(a) of the Copyright Act, 1957,
of his original literary work on 5-9-20XX. It made the balance payment of INR 1,50,000 on 12-12
-20XX. You are required to determine the time of supply, if Mr. Ganatra raised the invoice on:
i) 6-10-20XX, or
ii) 17-12-20XX. check the way of anwering shortly w/o lengthening

Answer
GST on supply of services by an author by way of transfer or permitting the use or
enjoyment of a copyright covered under section 13(1)(a) of the Copyright Act, 1957
relating to original literary works to a publisher is payable under reverse charge by such
publisher, i.e., Know & Grow Publishers.
As per section 13 of CGST Act, 2017, time of supply of service, on which GST is payable
under reverse charge, is earlier of the following:
(a) Date of payment as entered in the books of account of the recipient or date on which
payment is debited from the bank account, whichever is earlier
or
(b) 61st day from the date of issue of invoice by the supplier
(i) If the invoice is issued on 06.10.20XX, time of supply is as under:
• For payment of 50,000: 05.09.20XX [earlier of date of payment & 61st day from date of
issue of invoice]
• For payment of 1,50,000: 06.12.20XX [earlier of date of payment & 61st day from date of
issue of invoice]
(ii) If the invoice is issued on 17.12.20XX, time of supply is as under:
• For payment of 50,000: 05.09.20XX [earlier of date of payment & 61st day from date of
issue of invoice]
• For payment of 1,50,000: 12.12.20XX [earlier of date of payment & 61st day from date of
issue of invoice].