6.
TIME OF SUPPLY
1) Bajrang Pvt. Ltd. agreed to supply goods to Bhagirathi Pvt. Ltd. for ` 1,50,000 on 23rd June.
Next day, it removed the goods from its factory and issued the invoice on 25th June. Payment
for the goods is made by Bhagirathi Pvt. Ltd. on 15th July. The time of supply of goods is .
a) 23rd June
b) 24th June
c) 25th June
d) 15th July
2) Hanuman Pvt. Ltd. agreed to supply toys to Ganga Pvt. Ltd. for ` 1,50,000 on 23rd June and
received an advance of ` 1,00,000 on the same day. Next day, it removed the toys from
its factory and issued the invoice on 25th June. Balance payment of ` 50,000 was made
by Ganga Pvt. Ltd. on 15th July. The time of supply of the advance of ` 1,00,000 and
balance payment of` 50,000 shall be and .
rd th
a) 23 June; 15 July
b) 24th June; 24th June
c) 25th June; 25th June
d) 15th July;15th July
3) Determine the time of supply of goods with the help of the information provided below:
May 11 Supplier – Dhriti Enterprises – issues invoice for the goods taxable on reverse charge basis to
Parminder Constructions Ltd.
May 12 Parminder Constructions Ltd. receives the goods
May 30 Parminder Constructions Ltd. issues a cheque and records
payment in its books of accounts
May 31 Payment is debited from the bank account of Parminder Constructions Ltd.
June 1 Payment is credited in bank account of Dhriti Enterprises
June 2 Payment is recorded in the books of Dhriti Enterprises
a) May 12
b) May 30
c) June 11
d) June 1
4) Determine time of supply of services and date of receipt of payment with the
help of the information provided below:
May 4 Supplier – Dhriti Enterprises – provides services taxable under forward
M
charge to Parminder Constructions Ltd.
May 12 Parminder Constructions Ltd. issues invoice for the service
May 30 Parminder Constructions Ltd. issues a cheque and records payment in its books of
accounts
May 31 Payment is debited from bank account of Parminder Constructions Ltd.
June 1 Payment is credited in the bank account of Dhriti Enterprises
June 2 Payment is recorded in the books of Dhriti Enterprises
a) May 12; June 1
b) May 30; May 30
c) May 4 ; June 2
d) May 31 ; June 2
June 2
5) Style Saloon Ltd. provides vouchers worth ` 1,000 valid for a period of 6 months to the
customers who availed the services exceeding ` 10,000 in any month. The customers can
redeem such vouchers for the hair styling services taken from Style Saloon Ltd. Mr. Dwarka
availed services worth ` 12,000 on 3rd June from the saloon and is issued a voucher of `
1,000 on 5th June. He redeems the voucher on 4th September for hair styling services from
Style Saloon Ltd. The time of supply of voucher issued to Mr. Dwarka is .
rd
a) 3 June
b) 5th June
c) 4th September
d) 5th December
6) The time of supply of service in case of reverse charge mechanism is:
(a) Date on which payment is entered in the books of account of the recipient
(b) Date immediately following 30 Days from the date of issue of invoice
(c) Date on which the payment is debited in the bank account of recipient
(d) Earlier of (a), (b) or (c)
7) In case of supply of goods for ` 5,00,000, following information is provided-
Advance received on 1st April
Invoice issued on 15th April
Goods removed on 25th April
What is the time of supply of goods, where tax is payable under forward
charge?
(a) 1st April
(b) 15th April
(c) 25th April
(d) 30th April
8) Sham Ltd., located in Mumbai, is receiving legal services from a lawyer Mr. Gyan,
registered under GST. The aggregate turnover of Sham Ltd. in the preceding financial year
is ` 42 lakh. The information regarding date of payment, invoice etc. is as follows-
Invoice issued by Mr. Gyan on 15th April
Payment debited in the bank account of Sham Ltd. on 5th May
Date of payment entered in books of accounts of Sham Ltd.: 1st May What is
time of supply of services?
a) 1st May
b) 5th May
c) 15th June
d) 15th April
9) Ms. Pearl is a classical singer. She wants to organize a classical singing function, so she
booked an auditorium on 10th August for a total amount of Rs. 20,000. She paid Rs. 5,000 as
advance on that day. The classical singing function was organized on 10th October. The
auditorium owner issued invoice to Ms. Pearl on 25th November amounting to Rs. 20,000.
Pearl made balance payment of Rs. 15,000 on 30th November. Determine the time of supply
in this case.
a) Time of supply is 25th November for Rs. 20,000.
b) Time of supply is 25th November for Rs. 5,000 & 30th November for Rs. 15,000.
c) Time of supply is 10th August for Rs. 5,000 & 10th October for Rs. 15,000.
d) Time of supply is 10th October for Rs. 20,000.
Answers:-
1. B
2. B
3. A
4. A
5. B
6. D
7. B
8. A
9. C
