GST Supply 4.2

D · Advance payments and uncertainty about GST liability

Advance payments are a practical challenge related to Time of Supply, as businesses are unsure whether GST must be paid immediately or upon invoice generation. The other options relate to Place or Value of Supply.

B · False

For goods supplied onboard a conveyance, the Place of Supply is where the goods are taken on board, not the destination of the conveyance.

A · True

As per the CGST Act, under RCM, the Time of Supply is the earlier of the date of payment or 60 days from the invoice date.

D · The date of invoice issuance

The Time of Supply is determined by the date of invoice issuance when the invoice is issued before payment.

A · Location of the service recipient

The Place of Supply for services is determined by the location of the service recipient.

A · It reduces the value of supply

A post-supply discount reduces the value of supply as it is not agreed upon earlier.

B · Supply of goods within the same state

The Place of Supply is the location of the supplier when goods are supplied within the same state.

D · Cost of goods plus any additional charges

The value of supply includes the cost of goods plus any additional charges like freight.

C · The date of payment

The Time of Supply is the date of payment when payment is received before the invoice.

B · The location of the customer

The Place of Supply for goods delivered to a different state is the location of the customer.

C · Post-supply discounts

Post-supply discounts, if not agreed upon earlier, are not considered in the value of supply.

A · Location of the registered person

The Place of Supply for services to a registered person in another state is the location of that registered person.

C · 29th April 2025

As per Section 12 of the CGST Act, the Time of Supply for goods is the earlier of the invoice date or the delivery date. Since delivery was on 29th April and invoice on 5th May, the earlier date is 29th April 2025.

C · 12th October 2024

Under RCM, the Time of Supply is the earlier of the payment date or 60 days from the invoice date. Payment was made on 12th October 2024, which is earlier than 60 days from 30th August 2024 (i.e., 29th October 2024). Hence, 12th October 2024 is correct.

D · January 1, 2025

For gift vouchers for specific products, the Time of Supply is the date of issuance of the voucher, i.e., January 1, 2025, not the redemption date.

C · 17th March 2025

For imports, the Time of Supply is the date of filing the Bill of Entry or the date of clearance by customs, whichever is earlier. Here, Bill of Entry was filed on 17th March 2025, so that is the Time of Supply.

C · Tamil Nadu, IGST

Since the installation was in Tamil Nadu, the Place of Supply is Tamil Nadu. As the supplier is in Kerala and the place of supply is Tamil Nadu, it is an inter-state supply, so IGST applies.

D · Hyderabad, Telangana

For goods supplied onboard a conveyance, the Place of Supply is where the goods are taken on board. Here, goods were taken on board at Hyderabad, so the Place of Supply is Hyderabad, Telangana.

B · Tamil Nadu, IGST

Under Section 12(2)(b) of the IGST Act, when services are provided to an unregistered person and the supplier has the recipient's address, the Place of Supply is the recipient's address. Since Mr. Balaji's address is in Tamil Nadu, the Place of Supply is Tamil Nadu, making it int…

D · Kerala

As per Section 13 of the IGST Act, for import of services, the Place of Supply is the location of the recipient. Tharadas & Co LLP is in Kerala, so the Place of Supply is Kerala.

A · ₹1,20,000

As per Rule 28 of the CGST Rules, for supplies between related parties, the value of supply must be the open market value if available. Since the open market value is ₹1,20,000, GST will be calculated on that amount.

B · ₹5,20,000

As per Section 15 of the CGST Act, any incidental expenses including freight charged by the supplier at or before delivery shall be included in the value of supply. Hence, value = ₹5,00,000 + ₹20,000 = ₹5,20,000. (Note: The scenario text mentions ₹5,000 freight, but the question…

B · ₹13,75,000

As per Section 15(3)(b) of the CGST Act, post-supply discounts are deductible only if established in an agreement at or before the time of supply and specifically linked to invoices. Since the discount was not agreed upon earlier, it cannot be deducted. Hence, value remains ₹13,7…

A · ₹8,40,000

As per Section 15 of the CGST Act, any amount charged for incidental services like design, testing or installation must be included in the value of supply. Hence, total value = ₹8,00,000 + ₹40,000 = ₹8,40,000.