Determine the time of supply from the given information in each of the following independent cases: Particulars Date Supplier invoices goods taxable…

CA Intermediate · Taxation · MTP · January 2026
Determine the time of supply from the given information in each of the following independent cases: Particulars Date Supplier invoices goods taxable on reverse charge basis to Mithlesh & Sons May 4 Mithlesh & Sons receives the goods May 12 Mithlesh & Sons makes the payment May 30 Particulars Date Supplier invoices goods taxable on reverse charge basis to Prompts & Co. May 4 Prompts & Co. receives the goods, which were held up in transit June 12 Payment made for the goods July 3

Suggested Answer and Working Notes:

Determination of time of supply: The time of supply of goods on which GST is payable on reverse charge basis will be the earliest of the following dates: Date on which the goods are received i.e. May 12, orDate on which payment is recorded in the books of account of the recipient, or the date on which the same is debited in his bank account, whichever is earlier i.e. May 30, orDate immediately following 30 days from the date of issue of invoice by the supplier i.e. June 3. Accordingly, in the above case, time of supply shall be May 12, being earliest of above three dates. The time of supply of goods on which GST is payable on reverse charge basis will be the earliest of the following dates: Date on which the goods are received i.e. June 12, orDate on which payment is recorded in the books of account of the recipient, or the date on which the same is debited in his bank account, whichever is earlier i.e. July 3, orDate immediately following 30 days from the date of issue of invoice by the supplier i.e. June 4. Accordingly, in the above case, time of supply shall be June 4, being earliest of above three dates.

Topics: Paper 3A: Income Tax Laws, Paper 3B: Goods and Services Tax

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