Test 8 - Time of Supply

CMA VIPUL SHAH TEST 8 TIME AND VALUE OF SUPPLY
CHAPTER 8 – TIME AND VALUE OF SUPPLY

1) The liability to pay GST arise ____________ in case of supply of goods.
a) At the time of supply of goods
b) At the time of issue of invoice
c) On receipt of payment
d) Earliest of a, b or c
2) Time of supply of goods under CGST Act, 2017 is ____________

a) Date on which the supplier receives the payment with respect to the supply
b) Date of issue of invoice by the supplier
c) Date of dispatch of goods by the supplier
d) Earlier of (a) & (b)
3) Time of supply of goods liable to tax under reverse charge mechanism is

_________________.
a) Date of receipt of goods
b) Date on which the payment is made
c) Date immediately following 30 days from the date of issue of invoice by the supplier.
d) Earlier of a/b/c
4) Date on which the supplier receives the payment as per section 12 of CGST Act is ----
----------
a) Date entered in books of accounts
b) Date of credit in bank account
c) Date entered in books of accounts or date of credit in bank account, whichever is earlier
d) Date on which receipt voucher is issued by supplier.
5) What is the time of supply of service if the invoice is issued within 30 days from the
date of provision of service?
a) Date of issue of invoice
b) Date on which the supplier receives payment
c) Date of provision of service
d) Earlier of a) & b)
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6) What is the time of supply of service if the invoice is not issued within 30 days from
the date of provision of service?
a) Date of issue of invoice
b) Date on which the supplier receives payment
c) Date of provision of service
d) Earlier of b) & c)
7) What is the time of supply of service in case of reverse charge mechanism?

a) Date on which payment is made to the supplier
b) Date immediately following 60 days from the date of issue of invoice
c) Date of invoice
d) Earlier of a) and b)
8) What is the time of supply of service where services are received from an associated
enterprise located outside India?
a) Date of entry of services in the books of account
b) Date of payment
c) Earlier of a) & b)
d) Date of entry of services in the books of the supplier of service.
9) Time of supply of vouchers in respect of goods when the supply with respect to the
voucher is identifiable is ______________
a) Date of issue of voucher
b) Date of redemption of voucher
c) Date of issue of voucher or date of redemption of voucher whichever is earlier.
d) Date of issue of voucher or date of redemption of voucher whichever is later.
10) Time of supply of vouchers in respect of goods when the supply with respect to the
voucher is not identifiable is ______________
a) Date of issue of voucher
b) Date of redemption of voucher
c) Date of issue of voucher or date of redemption of voucher whichever is earlier.
d) Date of issue of voucher or date of redemption of voucher whichever is later.
11) Where the supplier of taxable goods receives an amount upto _______ in excess of the
amount indicated in the tax invoice, the time of supply to extent of such excess amount

shall, at the option of the said supplier, be the date of issue of invoice in respect of
such excess amount.
a) Rs. 1,000
b) Rs. 5,000
c) Rs. 10,000
d) Rs. 50,000.
12) The date on which the supplier receives the payment” shall be –
a) The date on which the payment is entered in his books of account.
b) The date on which the payment is credited to his bank account.
c) The date on which the payment is entered in his books of account or the date on which the
payment is credited to his bank account whichever is earlier.
d) The date on which the payment is entered in his books of account or the date on which the
payment is credited to his bank account whichever is later.
13) Determine the Time of supply in accordance with provisions of Section 12 of the CGST
Act, 2017 in case supply involves movement of goods.
Date of Removal Date of invoice Date when goods made Date of receipt of
available to recipient payment
01.10.2019 02.10.2019 03.10.2019 15.11.2019
a) 01.10.2019
b) 02.10.2019
c) 03.10.2019
d) 15.11.2019
14) Determine the Time of supply in accordance with provisions of section 12 of the CGST
Act, 2017 in case supply involves movement of goods.
Date of Removal Date of invoice Date when goods Date of receipt of
made available to payment
recipient
04.11.2019 04.11.2019 06.11.2019 01.10.2019
a) 04.11.2019
b) 04.12.2019
c) 06.11.2019
d) 01.10.2019.

Act, 2017 in case supply does not involve movement of goods.
Date of Invoice Date when goods made available to Date of receipt of
recipient payment
02.10.2019 03.10.2019 15.11.2019
a) 02.10.2019
b) 03.10.2019
c) 15.11.2019
d) 01.11.2019
Act, 2017 in case recipient of goods is liable to pay tax under reverse charge
mechanism.
Date of invoice Date of receipt of Date of payment Date when payment
goods in books debited in bank account
01.10.2019 05.10.2019 10.10.2019 12.10.2019
a) 01.10.2019
b) 05.10.2019
c) 10.10.2019
d) 12.10.2019
mechanism.
Date of invoice Date of receipt of Date of payment Date when payment
goods in books debited in bank account
01.10.2019 15.10.2019 10.10.2019 12.10.2019
a) 01.10.2019
b) 15.10.2019
c) 10.10.2019
d) 12.10.2019
mechanism.

Date of invoice Date of receipt of Date of payment in Date when payment

goods books debited in bank
account
01.10.2019 15.11.2019 18.11.2019 20.11.2019
a) 31.10.2019
b) 01.11.2019
c) 18.11.2019
d) 20.11.2019
19) XYZ Ltd. has purchased for its employees 100 vouchers dated 24-12-2019 worth Rs.
1,000 each from ABC Ltd., a footwear manufacturing company. The vouchers were
issued by ABC Ltd. on 25.12.2019. The vouchers can be encashed at retail outlets of
ABC Ltd. The same were given to employees on 26.12.2019. The employees of XYZ
Ltd. encashed the same on 01.01.2020. Determine time of supply of vouchers.
a) 24.12.2019
b) 25.12.2019
c) 26.12.2019
d) 01.01.2020
20) From the following information determine the time of supply if goods are supplied on
approval basis.
Removal of Goods Issue of Invoice Accepted by recipient Receipt of payment
01.12.2019 15.12.2019 05.12.2019 25.12.2019
a) 01.12.2019
b) 15.12.2019
c) 05.12.2019
d) 25.12.2019
21) From the following information determine the time of supply if goods are supplied on
approval basis.
Removal of Goods Issue of Invoice Accepted by recipient Receipt of payment
01.12.2018 25.07.2019 25.07.2019 20.07.2019
a) 01.12.2018
b) 25.07.2019
c) 20.07.2019
d) 01.06.2019

22) Mr. A supplies goods worth Rs. 23,600 to Mr. B and issues an invoice dated 28.7.2019
for Rs. 23,600 and Mr. B pays Rs. 24,000 on 30.07.2019 against such supply of goods.
The excess Rs. 400 [being less than Rs. 1,000] is adjusted in the next invoice for
supply of goods issued on 15.8.2019. Identify the time of supply and value of supply :
a) Rs. 24,000 – 30.7.2019
b) For Rs. 23,600 – 28.7.2019 and for Rs. 400 – 30.7.2019
c) Rs. 24,000 – 28.7.2019
d) For Rs. 23,600 – 28.7.2019 and for Rs. 400 – 15.8.2019
23) The time of supply to the extent it relates to an addition in the value of supply by way
of interest, late fee or penalty for delayed payment of any consideration shall be the
date on which :
a) The supplier receives such addition in value
b) The original invoice was issued
c) The supplier issues revised invoice
d) The original payment was received.
24) What is the time of supply of service if the invoice is issued within 30 days from the
date of supply of service?
a) Date of issue of invoice by the supplier
b) Date of receipt of payment or date of issue of invoice whichever is later.
c) Date of receipt of payment by the supplier
d) Date of receipt of payment or date of issue of invoice whichever is earlier.
25) What is the time of supply of service if the invoice is not issued within 30 days from
the date of supply of service and no advance payments are received?
a) Date of issue of invoice by the supplier.
b) Date of completion of supply of service
c) Date of receipt of payment by the supplier
d) Date of receipt of payment or date of issue of invoice whichever is earlier.
26) Suppose, one dealer has sent some goods to another dealer for Sales on Approval Basis.
In absence of any confirmation even after 6 months, it will be treated as :
a) Sales Return
b) Deemed Supply of Goods
c) Purchase return

d) None of the above.
27) Suppose one dealer received a receipt of Rs. 5 lakhs in respect of the supply without
issuing any invoice or not making any supply of goods for the time being. Whether this
receipt is taxable under GST?
a) Yes
b) No
c) No Tax Liability up to the actual supply of the goods
d) No liability up to the issuance of the sales invoice.
28) Minimum Service periods required to constitute a continuous supply of services with
periodic payment __________.
a) Exceeding 6 months
b) 6 months
c) Exceeding 3 months
d) 3 months.
29) What is the time of supply of service in case of reverse charge mechanism?
a) Date on which payment is made to the supplier.
b) Date immediately following 60 days from the date of issue of invoice.
c) Date of invoice by the supplier
d) Earlier of a) & b)
30) Value of services rendered is Rs. 1,18,000. Date of issue of invoice is 5th September
2019. Advance Received is Rs. 20,000 on 20th August 2019. Balance amount received
on 7th September 2019. What is the time of supply of service.
a) 5th September 2019 for Rs. 1,18,000.
b) 20th August 2019 for Rs. 1,18,000
c) 20th August 2019 – Rs. 20,000 and 5th September 2019 for Rs.98,000
d) 20th August 2019 – Rs. 20,000 and 7th September 2019 for Rs.98,000.
31) Determine the time of supply in each of following independent cases in accordance with
provisions of CGST Act, 2017 :
Date of actual supply of Time [Date] of Invoice, Bill or Date on which payment
service Challan as the case may be received.
10.11.2019 30.11.2019 15.12.2019
a) 10.11.2019

b) 30.11.2019
c) 15.12.2019
d) 10.12.2019
10.11.2019 12.12.2019 30.04.2019
a) 10.11.2019
b) 12.12.2019
c) 30.04.2019
d) 10.12.2019
10.11.2019 22.12.2019 12.12.2019
a) 10.11.2019
b) 22.12.2019
c) 12.12.2019
d) 10.12.2019
34) Apte & Apte Ltd. is located in India and holding 51% of shares of Wilson Ltd., a USA
based company. Wilson Ltd. provides Business Auxiliary Services to Apte & Apte Ltd.
From the following details, determine the time of supply of Apte & Apte Ltd.
Agreed consideration US $ 1,00,000
Date on which services are supplied by Wilson Ltd. 16.12.2019
Date on which invoice is sent by Wilson Ltd. 19.12.2019
Date of debit in the books of account of Apte & Apte Ltd. 30.12.2019
Date on which payment is made by Apte & Apte Ltd. 23.03.2020
a) 16.12.2019
b) 19.12.2019
c) 30.12.2019
d) 23.03.2019

35) From the following information determine the time of supply of services where services
are taxed on reverse charge basis.
Date of invoice Date of completion Date of payment Entry of receipt of services
issued by supplier of service by recipient in recipient’s books
30.11.2019 30.11.2019 10.12.2019 12.12.2019
a) 30.11.2019
b) 10.12.2019
c) 12.12.2019
d) 30.01.2020
36) From the following information determine the time of supply of services where services
are taxed on reverse charge basis.
Date of invoice Date of completion Date of payment Entry of receipt of services
issued by supplier of service by recipient in recipient’s books
30.11.2019 30.11.2019 10.03.2019 30.11.2019
a) 30.11.2019
b) 28.11.2019
c) 10.03.2019
d) 30.01.2020
37) There was increase in tax rate from 12% to 18% w.e.f. 1.6.2019. Which of the
following rate is applicable when services are supplied after change in rate of tax in June
2019 but invoice issued and payment received, both in April 2019.
a) 12% as it is lower of the two
b) 18% as it is higher of the two
c) 12% as invoice and payment were received prior to change in effective rate of tax.
d) 18% as the supply was completed after change in effective rate of tax.
38) There was increase in tax rate from 12% to 18% w.e.f. 1.6.2019. Which of the
following rate is applicable when services supplied and invoice raised after change in rate
of tax in June 2019 but payment received and goods supplied in April 2019.
c) 12% as payment was prior to change in effective rate of tax.
d) 18% since invoice was issued and supply was made after change in effective rate of tax.

39) There was decrease in tax rate from 18% to 5% w.e.f. 1.6.2019. Which of the
following rate is applicable when invoice was issued after change in rate of tax in June
2019 but payment received and goods supplied in April 2019.
c) 18% as goods were supplied and payment was received prior to change in effective rate of tax
d) 18% as since invoice was issued after change in effective rate of tax.
40) Which section governs the provisions regarding determining time of supply of goods?
a) Section 12
b) Section 13
c) Section 14
d) Section 15
41) Which section governs the provisions regarding determining time of supply of services?
a) Section 12
b) Section 13
c) Section 14
d) Section 15
42) Who is the recipient in case, the consideration is payable for the supply of goods?
a) Person liable to pay consideration for such goods
b) Person to whom goods are delivered
c) Person to whom the possession of goods are given
d) Both (b) and (c) are correct
43) Was the concept of arising of liability on receipt of advance applicable in pre GST Times
i. e. in Service Tax Act?
a) Yes
b) No
c) On specified services only
d) No, this concept was applicable in case of goods only.
Case study (Q. 44-45)

A purchase order with advance of Rs. 1,25,000 is received on 15-07-2019 for machine worth
Rs. 25,00,000 and entry duly made in the seller’s books of account. On 25-07-2019 the
machine is assembled, tested at sight, and accepted by buyer. Invoice is raised on 30-08-
2019 and balance payment of Rs. 23,75,000 is received on 10-09-2019.

44) What would be the time of supply in case of advance received?
a) 15-07-2019
b) 25-07-2019
c) 30-08-2019
d) 10-09-2019
45) What would be the time of supply in case of the balance payment?
a) 15-07-2019
b) 25-07-2019
c) 30-08-2019
d) 10-09-2019
46) On 04-09-2019, supplier invoices goods taxable on reverse charge basis to AB & Co. AB
& Co. receives the goods on 12-09-2019 and makes payment on 30-09-2019. Determine
the time of supply,
a) 04-09-2019
b) 03-10-2019
c) 12-09-2019
d) 30-09-2019
47) _____ is an instrument where there is an obligation to accept it as a consideration for

supply of goods or services.
a) Voucher
b) Payment receipt
c) Promissory note
d) Cheque
48) Ms. Reeta purchased a gift voucher (it can be redeemed against any product of the
departmental store) from a departmental store worth Rs. 2000 on 30-07-2019 and gifted
it to her friend on the occasion of her marriage on 05-08-2019. Her friend encashed the
same on 01-09-2019 for purchase of a cosmetic product. Determine the time of supply.
a) 30-07-2019
b) 05-08-2019
c) 01-09-2019
d) Supply is identified
49) What is the time of supply in residuary cases i.e. in all the remaining cases where
periodical return is not to be filed?
a) Date on which return is to be filed
b) Actual date of filing of return
c) Date of payment of tax
d) Date of collection of tax

50) Date of receipt of advance is the time of supply in case of advance received for supply
for services especially when the invoice & provisioning of service is done post advance
receipt. Comment.
a) True
b) False
c) Partially correct
d) None of the above

ANSWER
1 A 2 D 3 D 4 C 5 D 6 D 7 D 8 C 9 A 10 B
11 A 12 C 13 A 14 A 15 A 16 B 17 C 18 A 19 B 20 C
21 D 22 D 23 A 24 A 25 B 26 B 27 A 28 C 29 D 30 C
31 B 32 A 33 A 34 B 35 B 36 D 37 C 38 D 39 C 40 A
41 B 42 A 43 A 44 A 45 B 46 C 47 A 48 C 49 A 50 A

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CMA VIPUL SHAH TEST 8 TIME AND VALUE OF SUPPLY

CHAPTER 8 – TIME AND VALUE OF SUPPLY

2) Time of supply of goods under CGST Act, 2017 is ____________

3) Time of supply of goods liable to tax under reverse charge mechanism is

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7) What is the time of supply of service in case of reverse charge mechanism?

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Date of invoice Date of receipt of Date of payment in Date when payment

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Case study (Q. 44-45)

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47) _____ is an instrument where there is an obligation to accept it as a consideration for

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