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Section 14 governs change in rate of tax. If supply is COMPLETED before the change but invoice and payment are both AFTER the change, time of supply is:
ADate of payment
BDate of invoice
CDate of completion of supply
DEarlier of date of invoice or payment
Answer & Solution
Correct answer: D. Earlier of date of invoice or payment
1. Sec 14(a) applies when supply was provided BEFORE the change in rate.
2. Sub-clause (ii): if both invoice and payment are after the change, time of supply is the earlier of date of invoice and date of payment — new rate applies.
3. Sub-clause (i): invoice issued before change → date of invoice (old rate). Sub-clause (iii): payment received before change → date of payment (old rate).
_Source: ICAI BoS CA Final Paper 8, Ch 4 "Time of Supply", §Sec 14(a)(ii)_
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