Page 6 - Chapter 5 TOS

Answer: Legal Provision:-
Ü As per section 12(2) of CGST Act, 2017 read with notification 66/2017, the time of supply of goods shall be
earlier of the following dates:-
a) Date of issue of invoice or
b) last date to issue the invoice u/s 31.
Ü As per notification 66/2017, the time of supply of goods is not on advance received & this is applicable to
all registered persons except composition supplier & Supplier of Specified actionable claim.

Ü As per proviso to section 12(2) of CGST Act, if supplier of taxable goods receives upto `1000/- in excess of
amount indicated in the tax invoice, then supplier has the option to take the date of issue of invoice for such
excess amount as the time of supply for such excess.
Discussion & Conclusion:-
Scenario 1:-
Ü The time of supply shall be the date of invoice for excess ` 500 i.e. September 22, 20XX as per proviso to
section 12(2).
Scenario 2:-
Ü In this scenario, the amount in excess of invoice is ` 3000 which is more than ` 1000 & hence, proviso to
section 12(2) is not applicable here.

Ü Here, the last date to issue invoice cannot be determined and payment date is also not relevant as per
Notification 66/2017.
Ü Thus, the time of supply shall be the date of invoice for excess ` 3000 i.e. September 22, 20XX.

05: Sec 12(3):- TOS of goods under Reverse Charge
Q.5
Determine the time of supply of goods in the following independent cases assuming that GST is
payable under reverse charge:-

S r. Date of receipt Date of payment by recipient of goods Date of issue of invoice
No. of goods by supplier of goods

1. July 1 August 10 June 29
2. July 1 June 25 June 29
3. July 1 Part payment made on June 30 & balance amount paid on July 20 June 29

4. July 5 Payment entered in recipient's books of account on June 28 & debited
in recipient's bank account on June 30 June 1

5. July 1 Payment entered in recipient's books of account on June 30 & debited June 29
in recipient's bank account on June 26

6. August 1 August 10 June 29

Answer:
Legal Provision:-
As per section 12(3) of CGST Act, 2017, if supply of goods is taxable under reverse charge, then the time of
supply of goods shall be the earliest of the following dates:-
a) Date of receipt of goods or
b) Date of payment which shall be earlier of following:-
- date entered in the books of account of the recipient or
- date on which the payment is debited in his bank account.
c) 31st days from date of issue of invoice by the supplier. (Here, date of invoice is relevant only for calculating
thirty days from that date.)

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