Taxation - GST Ch 06: Time Value Of Supply - Test 1: answer key

Question 1 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · medium

Scenario. Vikramaditya Tech Labs LLP (VTL), a registered supplier in Pune, Maharashtra, manufactures industrial sensors and also provides calibration services. It is not a composition supplier. During FY 2026-27, VTL entered into the following transactions: (i) On 4th August 2026, it received an advance of ₹3,00,000 from Aryan Steels Ltd. for a consignment of sensors. The goods were removed from the factory on 12th September 2026 and the invoice was issued on the same date. The balance payment of ₹7,00,000 was received on 20th September 2026. (ii) VTL has a contract with Nandini Real Estates Pvt Ltd for continuous supply of sensors on a monthly basis. For the month of October 2026, the periodical statement was issued on 31st October 2026 and VTL received the payment on 5th November 2026. The invoice for the October supply was issued on 4th November 2026. (iii) VTL provided calibration services to Smt. Anuradha Sen on 10th October 2026. The invoice for ₹1,20,000 was issued on 25th October 2026. Smt. Sen made the payment on 5th November 2026. (iv) In a separate contract, VTL completed a calibration service on 28th October 2026 but could not issue the invoice within the prescribed time limit. The invoice was issued on 5th December 2026. The payment for this service was received on 15th November 2026.

What is the time of supply for the advance of ₹3,00,000 received by VTL from Aryan Steels Ltd. for the consignment of sensors?

1. No tax is payable on the advance; the time of supply for the entire supply is 12th September 2026 as per Notification No. 66/2017 CT. (correct answer)
2. 4th August 2026, as per section 12(2)(b) of the CGST Act, 2017.
3. 12th September 2026, as the invoice was issued on the date of removal of goods.
4. 20th September 2026, as it is the date of final payment.

Answer: A — No tax is payable on the advance; the time of supply for the entire supply is 12th September 2026 as per Notification No. 66/2017 CT.

Explanation. As per Notification No. 66/2017 CT, a registered person (excluding composition suppliers) is not required to pay GST on the advance received for the supply of goods. The time of supply for the purpose of payment of tax is the date of issue of invoice or the last date on which the invoice ought to have been issued under section 31. Since the invoice was issued on the date of removal (12th September 2026), this is the time of supply for the entire supply value, not the date of advance.

Where it goes wrong. Students often apply the general rule under section 12(2) and consider the advance date as the time of supply, ignoring the overriding effect of Notification No. 66/2017 CT for goods.

Authority. Section 12(2) of the CGST Act, 2017; Notification No. 66/2017 CT dated 15.11.2017

Question 2 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · medium

For the continuous supply of sensors to Nandini Real Estates Pvt Ltd for October 2026, what is the time of supply?

1. 31st October 2026, the date of the periodical statement. (correct answer)
2. 5th November 2026, the date of receipt of payment.
3. 4th November 2026, the date of issue of the invoice.
4. The due date for filing the return for October 2026.

Answer: A — 31st October 2026, the date of the periodical statement.

Explanation. For a continuous supply of goods where successive statements of accounts are involved, the invoice must be issued before or at the time of issuance of the periodical statement under section 31(4). The time of supply under section 12(2)(a) is the date of issue of invoice or the last date on which it ought to have been issued. Since the invoice was issued on 4th November 2026 (after the statement date of 31st October), the last date for issuance was 31st October 2026. Therefore, the time of supply is 31st October 2026, being earlier than the date of payment (5th November).

Where it goes wrong. Students may incorrectly take the actual invoice date (4th November) or the payment date (5th November) instead of the statutory last date for invoice issuance, which is the date of the periodical statement.

Authority. Section 12(2) of the CGST Act, 2017; Section 31(4) of the CGST Act, 2017

Question 3 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · medium

What is the time of supply for the calibration services provided by VTL to Smt. Anuradha Sen?

1. 25th October 2026, the date of issue of the invoice. (correct answer)
2. 10th October 2026, the date of provision of service.
3. 5th November 2026, the date of receipt of payment.
4. The due date for filing the return for October 2026.

Answer: A — 25th October 2026, the date of issue of the invoice.

Explanation. For services under forward charge, if the invoice is issued within 30 days from the date of supply of service, the time of supply is the earlier of the date of issue of invoice or the date of receipt of payment [Section 13(2)(a)]. The service was provided on 10th October 2026 and the invoice was issued on 25th October 2026, which is within 30 days. The payment was received later on 5th November 2026. Therefore, the time of supply is the date of issue of invoice, i.e., 25th October 2026.

Where it goes wrong. Students might incorrectly select the date of provision of service, which is only relevant if the invoice is not issued within the prescribed 30-day period.

Authority. Section 13(2)(a) of the CGST Act, 2017; Rule 47 of the CGST Rules, 2017

Question 4 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · hard

For the second calibration service where the invoice was issued on 5th December 2026, what is the time of supply?

1. 28th October 2026, the date of completion of service.
2. 15th November 2026, the date of receipt of payment.
3. 5th December 2026, the date of issue of the invoice.
4. The date of provision of service or the date of payment, whichever is earlier. (correct answer)

Answer: D — The date of provision of service or the date of payment, whichever is earlier.

Explanation. Under section 13(2)(b), if the invoice is not issued within the time prescribed under section 31 (30 days from the date of supply of service), the time of supply is the earlier of the date of provision of service or the date of receipt of payment. The service was completed on 28th October 2026 and payment was received on 15th November 2026. Therefore, the time of supply is the earlier of these two dates, i.e., 28th October 2026.

Where it goes wrong. Option (d) describes the rule correctly, but the question asks for the time of supply, making option (a) the specific date, which is earlier than the payment date.

Authority. Section 13(2)(b) of the CGST Act, 2017

Question 5 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · medium

Scenario. Bharat Infrastructure Ltd. (BIL), a registered entity in Delhi, is engaged in construction and infrastructure development. During the financial year 2026-27, BIL entered into the following transactions: (i) BIL received a consignment of specialised construction material from a supplier in Germany on 15th September 2026. The supplier issued an invoice on 1st September 2026 for EUR 50,000. BIL made the payment for the goods on 25th September 2026. The tax on this supply is payable under reverse charge. (ii) BIL availed the services of a legal firm, Ganga & Associates, for a project dispute. The firm issued its invoice on 10th October 2026. BIL made the payment for these legal services on 18th December 2026. The applicable tax on legal services is payable under reverse charge. (iii) BIL purchased gift vouchers worth ₹2,00,000 from a retail chain on 5th November 2026. These vouchers are redeemable against specific construction materials. The identity of the goods is identifiable at the time of issue of the voucher. (iv) For a project in a remote area, BIL could not determine the time of supply of certain goods under the general provisions due to a system error. The goods were received and recorded in BIL's books on 20th November 2026. BIL files its GST returns on a monthly basis, and the due date for the return for November 2026 was 20th December 2026.

What is the time of supply for the import of construction material from the German supplier, assuming tax is payable under reverse charge?

1. 15th September 2026, the date of receipt of goods. (correct answer)
2. 1st September 2026, the date of issue of invoice by the supplier.
3. 1st October 2026, the date immediately following 30 days from the invoice date.
4. 25th September 2026, the date of payment.

Answer: A — 15th September 2026, the date of receipt of goods.

Explanation. For goods taxable under reverse charge, section 12(3) provides that the time of supply is the earliest of: (a) date of receipt of goods (15th September 2026); (b) date of payment (25th September 2026); or (c) the date immediately following 30 days from the date of issue of invoice (1st October 2026). The earliest of these is 15th September 2026.

Where it goes wrong. Students often confuse the 30-day rule for goods with the 60-day rule for services, or they might select the invoice date, which is not a direct determinant under section 12(3).

Authority. Section 12(3) of the CGST Act, 2017

Question 6 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · hard

What is the time of supply for the legal services availed from Ganga & Associates, which are taxable under reverse charge?

1. 10th October 2026, the date of issue of invoice by the supplier.
2. 18th December 2026, the date of payment.
3. 9th December 2026, the date immediately following 60 days from the invoice date. (correct answer)
4. The date of entry in the books of account of BIL.

Answer: C — 9th December 2026, the date immediately following 60 days from the invoice date.

Explanation. For services taxable under reverse charge, section 13(3) stipulates that the time of supply is the earlier of the date of payment (18th December 2026) or the date immediately following 60 days from the date of issue of invoice (10th October 2026 + 60 days = 9th December 2026). The earlier date is 9th December 2026.

Where it goes wrong. Students may apply the 30-day rule applicable to forward charge services or incorrectly select the date of payment without comparing it with the 60-day statutory limit.

Authority. Section 13(3) of the CGST Act, 2017

Question 7 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · medium

What is the time of supply for the gift vouchers purchased by BIL on 5th November 2026, where the identity of the goods is identifiable at the time of issue?

1. 5th November 2026, the date of issue of the voucher. (correct answer)
2. The date of redemption of the voucher.
3. The due date for filing the return for November 2026.
4. No GST is applicable on the purchase of vouchers.

Answer: A — 5th November 2026, the date of issue of the voucher.

Explanation. For vouchers, the time of supply is the date of issue of the voucher if the supply is identifiable at that point. Since BIL purchased vouchers redeemable against specific construction materials on 5th November 2026, the supply is identifiable, and the time of supply is the date of issue, i.e., 5th November 2026. (Note: The Finance Act, 2025 has omitted the specific voucher provisions w.e.f. 01.10.2025, but the foundational principle for identifiable supplies remains for exam purposes as per the study material).

Where it goes wrong. Students may incorrectly choose the date of redemption, which applies only when the supply is not identifiable at the time of issue of the voucher.

Authority. Section 12(4) of the CGST Act, 2017 (as applicable before its omission by the Finance Act, 2025, for transactions prior to 01.10.2025; however, for academic purposes under the study material, the principle remains that if the supply is identifiable at the time of issue, the date of issue is the time of supply).

Question 8 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · medium

For the goods where the time of supply could not be determined under the general provisions, and which were recorded in BIL's books on 20th November 2026, what is the time of supply?

1. 20th November 2026, the date of entry in the books of account.
2. The date on which the tax is actually paid.
3. 20th December 2026, the due date for filing the periodical return for November 2026. (correct answer)
4. 15th December 2026, the statutory due date for filing the return.

Answer: C — 20th December 2026, the due date for filing the periodical return for November 2026.

Explanation. Under the residual provisions of section 12(5), if it is not possible to determine the time of supply under the preceding sub-sections, and a periodical return has to be filed, the time of supply is the date on which such return is required to be filed. For November 2026, the due date was 20th December 2026.

Where it goes wrong. Students often select the date of entry in books (20th November) or the actual payment date, overlooking the specific residual rule that fixes the time of supply at the due date of the periodical return.

Authority. Section 12(5) of the CGST Act, 2017

Question 9 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

M/s Suryodaya Enterprises, a registered supplier, provided services valued at ₹5,00,000 to a client on 1st December 2026. The invoice was issued on 15th December 2026. The client paid ₹2,00,000 as an advance on 25th November 2026 and the balance on 10th January 2027. What is the time of supply for the advance amount?

1. 1st December 2026, as the service was provided after the advance.
2. 15th December 2026, the date of issue of invoice.
3. 25th November 2026, as the payment was received before the provision of service. (correct answer)
4. No tax is payable on the advance for services.

Answer: C — 25th November 2026, as the payment was received before the provision of service.

Explanation. For forward charge services, the time of supply is the earlier of the date of issue of invoice or the date of receipt of payment, to the extent the payment covers the supply. Since the invoice was issued within 30 days of service (15th December), the time of supply for the advance of ₹2,00,000 is the date of receipt of payment, i.e., 25th November 2026, as it is earlier than the invoice date.

Where it goes wrong. Students may incorrectly assume that GST on advances for services is always deferred, or they might select the invoice date without considering the earlier payment date.

Authority. Section 13(2)(a) of the CGST Act, 2017

Question 10 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A supplier of goods under forward charge received an excess payment of ₹800 over the invoice value on 10th October 2026. The invoice was issued on 5th October 2026. The supplier wishes to exercise the option available under the proviso to section 12(2). What is the time of supply for this excess amount?

1. 10th October 2026, the date of receipt of excess payment.
2. The due date for filing the return for October 2026.
3. The last date for issuance of invoice under section 31.
4. 5th October 2026, the date of issue of invoice. (correct answer)

Answer: D — 5th October 2026, the date of issue of invoice.

Explanation. The proviso to section 12(2) allows the supplier to opt for the date of issue of invoice as the time of supply for an excess payment up to ₹1,000 received over the invoice value. Since the supplier wishes to exercise this option, the time of supply for the excess ₹800 is the date of issue of the invoice, i.e., 5th October 2026.

Where it goes wrong. Students may assume the time of supply is always the date of receipt of excess payment, ignoring the optional statutory relief provided for small excess amounts.

Authority. Proviso to Section 12(2) of the CGST Act, 2017

Question 11 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

M/s Kalpana Traders sold goods to a buyer on 1st September 2026 for ₹2,00,000. The payment was delayed, and the buyer paid interest of ₹5,000 on 15th November 2026. What is the time of supply for this interest amount?

1. 1st September 2026, the date of supply of goods.
2. The date of issue of the invoice for the goods.
3. 15th November 2026, the date on which the supplier received the interest. (correct answer)
4. The due date for filing the return for November 2026.

Answer: C — 15th November 2026, the date on which the supplier received the interest.

Explanation. Section 12(6) explicitly provides that the time of supply for an addition in value by way of interest, late fee, or penalty for delayed payment of consideration is the date on which the supplier receives such addition in value. Therefore, the time of supply is 15th November 2026.

Where it goes wrong. Students may incorrectly link the time of supply of interest to the original supply date or the invoice date, rather than the specific provision for delayed payment charges.

Authority. Section 12(6) of the CGST Act, 2017

Question 12 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

An associated enterprise located outside India provides technical services to M/s Bharat Ltd. in India. The services were recorded in the books of Bharat Ltd. on 5th October 2026, and the payment was made on 20th October 2026. What is the time of supply for these services under reverse charge?

1. The date of issue of invoice by the foreign supplier.
2. 20th October 2026, the date of payment.
3. The date immediately following 60 days from the date of invoice.
4. 5th October 2026, the date of entry in the books of account of the recipient, or 20th October 2026, whichever is earlier. (correct answer)

Answer: D — 5th October 2026, the date of entry in the books of account of the recipient, or 20th October 2026, whichever is earlier.

Explanation. For import of services from an associated enterprise located outside India, the second proviso to section 13(3) overrides the general reverse charge mechanism. The time of supply is the earlier of the date of entry in the books of account of the recipient (5th October 2026) or the date of payment (20th October 2026). Hence, 5th October 2026 is the time of supply.

Where it goes wrong. Students may apply the general 60-day rule for RCM services, ignoring the special provision for associated enterprises.

Authority. Second proviso to Section 13(3) of the CGST Act, 2017

Question 13 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

M/s Himani Ltd. is a registered person. It received goods from an unregistered supplier on 10th November 2026. The supplier issued an invoice on 5th November 2026. M/s Himani Ltd. made the payment on 20th November 2026. What is the time of supply for these goods under reverse charge?

1. 5th November 2026, the date of invoice.
2. 10th November 2026, the date of receipt of goods. (correct answer)
3. 5th December 2026, the 31st day from the invoice date.
4. 20th November 2026, the date of payment.

Answer: B — 10th November 2026, the date of receipt of goods.

Explanation. Under section 12(3), the time of supply for goods under reverse charge is the earliest of: (a) date of receipt of goods (10th November 2026); (b) date of payment (20th November 2026); or (c) the date immediately following 30 days from the date of issue of invoice (5th December 2026). The earliest is 10th November 2026.

Where it goes wrong. Students may incorrectly select the 31st day from the invoice date or the payment date without comparing all three statutory dates.

Authority. Section 12(3) of the CGST Act, 2017

Question 14 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A registered person provided services on 1st November 2026. The invoice was issued on 10th December 2026. The payment was received on 5th December 2026. What is the time of supply for these services?

1. 1st November 2026, as the invoice was not issued within 30 days.
2. 10th December 2026, the date of issue of invoice.
3. 5th December 2026, the date of receipt of payment.
4. The date of provision of service or the date of payment, whichever is earlier. (correct answer)

Answer: D — The date of provision of service or the date of payment, whichever is earlier.

Explanation. Since the invoice was issued on 10th December 2026, which is beyond 30 days from the date of provision of service (1st November 2026), section 13(2)(b) applies. The time of supply is the earlier of the date of provision of service (1st November 2026) or the date of receipt of payment (5th December 2026). Thus, the time of supply is 1st November 2026. Option (d) correctly states the rule, and since 1st November is earlier, it is the specific answer.

Where it goes wrong. Students may incorrectly apply section 13(2)(a) and select the invoice date or payment date, failing to notice that the invoice was not issued within the prescribed 30-day period.

Authority. Section 13(2)(b) of the CGST Act, 2017

Question 15 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

M/s Dev Enterprises, a registered supplier under forward charge, received an advance of ₹50,000 on 1st October 2026 for goods to be supplied in December 2026. The goods were removed on 15th December 2026 and the invoice was issued on the same date. What is the time of supply for the advance?

1. 1st October 2026, the date of receipt of advance.
2. 15th December 2026, the date of issue of invoice. (correct answer)
3. The last date for issuance of invoice for the December supply.
4. No GST is payable on the advance for goods.

Answer: B — 15th December 2026, the date of issue of invoice.

Explanation. As per Notification No. 66/2017 CT, a registered supplier of goods under forward charge is not liable to pay GST on the advance received. The tax is payable on the date of issue of the invoice or the last date on which the invoice ought to have been issued. Since the invoice was issued on 15th December 2026, this is the time of supply.

Where it goes wrong. Students may incorrectly select the advance date, applying the general rule for services to goods, ignoring the specific exemption notification.

Authority. Notification No. 66/2017 CT dated 15.11.2017

Question 16 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A supplier issued an invoice for goods on 1st August 2026. The goods were delivered on 5th August 2026. The payment was received on 10th August 2026. However, the supplier received an excess payment of ₹600 over the invoice value on 15th August 2026. The supplier did not exercise the option to treat the invoice date as the time of supply for the excess. What is the time of supply for the excess amount?

1. 1st August 2026, the date of invoice.
2. 5th August 2026, the date of delivery.
3. 15th August 2026, the date of receipt of excess payment. (correct answer)
4. 10th August 2026, the date of original payment.

Answer: C — 15th August 2026, the date of receipt of excess payment.

Explanation. The proviso to section 12(2) provides an option to the supplier to treat the invoice date as the time of supply for an excess payment up to ₹1,000. If the supplier does not exercise this option, the general rule under section 12(2)(b) applies, and the time of supply is the date of receipt of payment. Therefore, the time of supply for the excess ₹600 is 15th August 2026.

Where it goes wrong. Students may assume the invoice date always applies to excess payments, overlooking that it is an optional benefit that must be consciously exercised.

Authority. Section 12(2)(b) of the CGST Act, 2017; Proviso to Section 12(2)

Question 17 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

M/s Prakash & Co. provided services to a client on 10th September 2026. The invoice was issued on 25th September 2026. The client paid the amount on 5th October 2026. However, the client also paid a late fee of ₹2,000 on 10th November 2026 for the delay in payment. What is the time of supply for the late fee?

1. 10th September 2026, the date of provision of service.
2. 25th September 2026, the date of issue of invoice.
3. 5th October 2026, the date of payment of consideration.
4. 10th November 2026, the date of receipt of the late fee. (correct answer)

Answer: D — 10th November 2026, the date of receipt of the late fee.

Explanation. Section 13(6) provides that the time of supply for an addition in value by way of interest, late fee, or penalty for delayed payment of consideration is the date on which the supplier receives such addition in value. Therefore, the time of supply for the late fee is 10th November 2026.

Where it goes wrong. Students may incorrectly link the late fee to the original service provision date or the invoice date, rather than the specific date of receipt of the late fee.

Authority. Section 13(6) of the CGST Act, 2017

Question 18 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A registered person under forward charge supplied goods on 5th December 2026. The invoice was issued on 10th December 2026. The payment was received on 15th December 2026. What is the time of supply?

1. 5th December 2026, the date of supply.
2. 10th December 2026, the date of issue of invoice. (correct answer)
3. 15th December 2026, the date of receipt of payment.
4. The last date for issuance of invoice under section 31.

Answer: B — 10th December 2026, the date of issue of invoice.

Explanation. For goods under forward charge, the time of supply is the earlier of the date of issue of invoice or the last date on which the invoice ought to have been issued under section 31, to the extent the invoice covers the supply. The invoice was issued on 10th December 2026, which is within the prescribed time (before or at the time of removal/delivery). The payment was received later. Therefore, the time of supply is 10th December 2026.

Where it goes wrong. Students may apply the general 'earlier of invoice or payment' rule and incorrectly select the payment date, which is later, or the supply date, which is not a direct determinant under section 12(2)(a).

Authority. Section 12(2)(a) of the CGST Act, 2017

Question 19 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

M/s Nandini Ltd. availed services of a goods transport agency (GTA) for transportation of goods. The GTA issued an invoice on 1st October 2026. M/s Nandini Ltd. made the payment on 15th November 2026. The tax is payable under reverse charge. What is the time of supply?

1. 1st October 2026, the date of issue of invoice.
2. 15th November 2026, the date of payment. (correct answer)
3. 30th November 2026, the 61st day from the invoice date.
4. The date of entry in the books of account of the recipient.

Answer: B — 15th November 2026, the date of payment.

Explanation. For RCM services, section 13(3) provides that the time of supply is the earlier of the date of payment (15th November 2026) or the date immediately following 60 days from the date of issue of invoice (1st October 2026 + 60 days = 30th November 2026). The earlier date is 15th November 2026.

Where it goes wrong. Students may incorrectly select the 61st day from the invoice date, which is the later of the two statutory dates, or they may apply the 30-day rule meant for goods.

Authority. Section 13(3) of the CGST Act, 2017

Question 20 · 2 marks · Taxation - GST Ch 06: Time Value Of Supply · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A supply of goods under reverse charge was made on 1st September 2026. The supplier issued the invoice on 5th September 2026. The recipient received the goods on 10th September 2026 and made the payment on 20th September 2026. What is the time of supply?

1. 5th September 2026, the date of invoice.
2. 10th September 2026, the date of receipt of goods. (correct answer)
3. 20th September 2026, the date of payment.
4. 5th October 2026, the 31st day from the invoice date.

Answer: B — 10th September 2026, the date of receipt of goods.

Explanation. Under section 12(3), the time of supply for goods under reverse charge is the earliest of: (a) date of receipt of goods (10th September 2026); (b) date of payment (20th September 2026); or (c) the date immediately following 30 days from the date of issue of invoice (5th October 2026). The earliest of these is 10th September 2026.

Where it goes wrong. Students may incorrectly select the invoice date or the 31st day from the invoice date, overlooking the actual date of receipt of goods which is earlier.

Authority. Section 12(3) of the CGST Act, 2017