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Time of supply of goods under Sec 12(2) (forward charge) is the earliest of:
ADate of removal of goods
BDate of receipt of payment only
CDate of invoice or last date by which invoice should have been issued, OR date of receipt of payment
DDate of entry in books of recipient
Answer & Solution
Correct answer: C. Date of invoice or last date by which invoice should have been issued, OR date of receipt of payment
1. Sec 12(2) prescribes time of supply of goods under forward charge.
2. It is the EARLIER of: (a) date of invoice or last date for issue of invoice u/s 31, and (b) date of receipt of payment.
3. Date of removal alone is not the trigger — it determines the last date for invoice issuance under Sec 31.
_Source: ICAI BoS CA Final Paper 8, Ch 4 "Time of Supply", §Sec 12(2)_
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