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GTA service: tax is payable by recipient under RCM (notified). GTA issues consignment note on 5 March; recipient pays freight on 20 March; recipient enters goods in books on 12 March. Time of supply is:
A5 March
B12 March
CEarlier of 5 March and 20 March
D20 March
Answer & Solution
Correct answer: D. 20 March
1. Sec 13(3) — RCM for services: time of supply = earlier of date of payment or date immediately after 60 days from invoice.
2. Date of payment = 20 March; 60 days from invoice (5 Mar) = 4 May. Earlier of 20 March and 4 May is 20 March.
3. Date of entry in books (12 March) is the fallback only if neither (a) nor (b) is determinable — not applicable here.
_Source: ICAI BoS CA Final Paper 8, Ch 4 "Time of Supply", §Sec 13(3)_
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