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Mr. K sells goods to Mr. L on 1 Aug 2024 (forward charge). He issues invoice on 1 Aug, despatches the goods on 2 Aug, and Mr. L pays on 28 July 2024 (advance Rs 50,000) plus balance Rs 50,000 on 5 Aug. Time of supply for the GOODS supply is:
A28 July 2024
B1 August 2024
C5 August 2024
D2 August 2024
Answer & Solution
Correct answer: B. 1 August 2024
1. Notification 66/2017-CT exempts tax on advances for GOODS — so the Rs 50,000 advance on 28 July does NOT trigger time of supply.
2. Time of supply = date of invoice (1 Aug) per Sec 12(2)(a), since invoice was issued at/before removal.
3. Therefore the full Rs 1 lakh supply's time of supply is 1 Aug 2024.
_Source: ICAI BoS CA Final Paper 8, Ch 4 "Time of Supply", §Sec 12(2) + Notf 66/2017-CT_
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