Time of Supply Multiple Choice Questions
1. The date on which the supplier receives the payment shall be
A. the date on which the payment is entered in his books of account
B. the date on which the payment is credited to his bank account
C. the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account whichever is earlier
D. the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account whichever is later
Answer: C. the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account whichever is earlier
2. What is time of supply of goods, in case of forward charge?
A. Date of issue of invoice
B. Due date of issue of invoice
C. Date of receipt of consideration by the supplier
D. Earlier of (A) & (B)
Answer: D. Earlier of (A) & (B)
3. Mr. A sold goods to Mr. B. Determine the TOS in accordance with the provisions of Section 12 of the CGST Act, 2017 in case supply involves movement of goods.Date of removal – 1st Oct. 2019 Date of Invoice – 2nd Oct. 2019 Date when goods made available to the recipient – 3rd Oct. 2019 Date of receipt of payment – 15th Nov. 2019
A. 1st Oct. 2019
B. 2nd Oct. 2019
C. 3rd Oct. 2019
D. 15th Nov. 2019
Answer: A. 1st Oct. 2019
4. Mr.A sold goods to Mr. B. Determine the TOS in accordance with the provisions of Section 12 of the CGST Act, 2017 in case supply involves movement of goods. Date of removal – 3rd Oct. 2019 Date of Invoice – 1st Oct. 2019Date when goods made available to the recipient – 4th Oct. 2019 Date of receipt of payment – 25th Nov. 2019
A. 3rd Oct. 2019
B. 1st Oct. 2019
C. 4th Oct. 2019
D. 25th Nov. 2019
Answer: B. 1st Oct. 2019
5. Determine the Time of supply in accordance with provisions of Section 12 of the CGST Act, 2017 in case supply involves movement of goods.Date of Invoice : 02-10-2019 Date goods made available to recipient : 03-10-2019 Date of receipt of payment : 15-11-2019
A. Date of Invoice : 02-10-2019
B. Date goods made available to recipient : 03-10-2019
C. Date of receipt of payment : 15-11-2019
D. None of the above
Answer: A. Date of Invoice : 02-10-2019
6. Determine the Time of supply in accordance with provisions of Section 12 of the CGST Act,2017 in case supply involves movement of goods. Date of Removal of goods : 03-10-2019 Date of Invoice : 01-10-2019 Date goods made available to recipient : 04-10-2019 Date of receipt of payment : 25-11-2019
A. Date of Removal of goods : 03-10-2019
B. Date of Invoice : 01-10-2019
C. Date goods made available to recipient : 04-10-2019
D. Date of receipt of payment : 25-11-2019
Answer: B. Date of Invoice : 01-10-2019
7. Determine the Time of supply in accordance with provisions of Section 12 of the CGST Act,2017 in case supply involves movement of goods. Date of Removal of goods : 05-11-2019 Date of Invoice : 04-11-2019 Date goods made available to recipient : 06-11-2019 Date of receipt of payment : 01-10-2019
A. Date of Removal of goods : 05-11-2019
B. Date of Invoice : 04-11-2019
C. Date goods made available to recipient : 06-11-2019
D. Date of receipt of payment : 01-10-2019
Answer: B. Date of Invoice : 04-11-2019
8. Mr. A sold goods to Mr. B. Determine the TOS in accordance with the provisions of Section 12 ofthe CGST Act, 2017 in case supply does not involve movement of goods. Date of delivery – 2nd Oct. 2019 (Date when the goods made available to the recipient) Date of Invoice – 3rd Oct. 2019 Date of receipt of payment – 15th Nov. 2019
A. 2nd Oct. 2019
B. 3rd Oct. 2019
C. 15th Nov. 2019
D. 1st Nov. 2019
Answer: A. 2nd Oct. 2019
9. Determine the Time of supply in case goods are supplied on approval basis Removal of goods : 01-12-2019 Issue of Invoice : 15-12-2019 Accepted by recipient : 05-12-2019 Receipt of payment : 25-12-2019
A. Removal of goods : 01-12-2019
B. Issue of Invoice : 15-12-2019
C. Accepted by recipient : 05-12-2019
D. Receipt of payment : 25-12-2019
Answer: B. Issue of Invoice : 15-12-2019
10. Where the supplier of taxable goods receives an amount upto in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount.
A. 1,000
B. 5,000
C. 10,000
D. 50,000
Answer: A. 1,000
11. The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which
A. The supplier receives such addition in value
B. The original invoice was issued
C. The supplier issues revised invoice
D. The original payment was received
Answer: A. The supplier receives such addition in value
12. Tax invoice must be issued by on supplies made by him.
A. Every supplier
B. Every taxable person
C. Every Registered person not paying tax under composition scheme
D. All the above
Answer: C. Every Registered person not paying tax under composition scheme
13. An invoice must be issued
A. At the time of removal of goods
B. On transfer of risks and rewards of the goods to the recipient
C. On receipt of payment for the supply
D. None of the above
Answer: A. At the time of removal of goods
14. In case of goods sent on sale on approval basis, invoice has to be issued
A. While sending the goods; another Invoice has to be issued by the recipient while rejecting the goods
B. When the recipient accepts the goods or ten months from the date of supply whichever is earlier
C. When the recipient accepts the goods or six months from the date of supply whichever is earlier
D. When the recipient accepts the goods or three months from the date of supply whichever is earlier
Answer: C. When the recipient accepts the goods or six months from the date of supply whichever is earlier
15. Where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued
A. before/at the time of supply
B. 6 months from the date of removal
C. earlier of (a) or (b)
D. none of the above
Answer: C. earlier of (a) or (b)
16. GST a dealer has sent some goods to CST, another dealer, for Sales on Approval Basis. Inabsence of any confirmation even after 6 months, it will be treated as
A. Sales Return
B. Deemed Supply of Goods
C. Purchase return
D. None of the Above
Answer: B. Deemed Supply of Goods
17. What is time of supply of goods liable to tax under reverse charge mechanism?
A. Date of receipt of goods
B. Date on which the payment is made
C. Date immediately following 30 days from the date of issue of invoice by the supplier
D. Earlier of (a) or (b) or (c)
Answer: D. Earlier of (a) or (b) or (c)
18. Determine the Time of supply in accordance with provisions of Section 12 of the CGST Act,2017 in case recipient of goods is liable to pay tax under reverse charge mechanism. Date of Invoice : 01-10-2019 Date of receipt of goods : 15-10-2019 Date of payment in books : 10-10-2019 Date of debit of payment in Bank A/c : 12-10-2019
A. Date of Invoice : 01-10-2019
B. Date of receipt of goods : 15-10-2019
C. Date of payment in books : 10-10-2019
D. Date of debit of payment in Bank A/c : 12-10-2019
Answer: A. Date of Invoice : 01-10-2019
19. What is the time of supply of vouchers when the supply with respect to the voucher is identifiable?
A. Date of issue of voucher
B. Date of redemption of voucher
C. Earlier of (a) and (b)
D. (a) and (b) whichever is later
Answer: A. Date of issue of voucher
20. What is the time of supply of vouchers when the supply with respect to the voucher is notidentifiable?
A. Date of issue of voucher
B. Date of redemption of voucher
C. Earlier of (A) and (B)
D. (A) and (B) whichever is later
Answer: B. Date of redemption of voucher
21. What is date of receipt of payment?
A. Date of entry in the books
B. Date of payment credited into bank account
C. Date of deposit of cheque into bank account
D. Earlier of (A) and (B)
Answer: D. Earlier of (A) and (B)
22. XYZ Ltd. has purchased for its employees 100 vouchers dated 24-02-2019 worth 1,000 each from ABC Ltd. a footwear manufacturing company. The vouchers were issued by ABC Ltd. on 25-02-2019. The vouchers can be encashed at retail outlets of ABC Ltd. The same were given to employees on 26-02-2019. The employees of XYZ Ltd. encashed the same on 01-03-2019. Determine time of supply of vouchers.
A. 24-02-2019
B. 25-02-2019
C. 26-02-2019
D. 01-03-2019
Answer: B. 25-02-2019
23. What is the time of supply of service if the invoice is issued within 30 days from the date ofprovision of service?
A. Date of issue of invoice
B. Date on which the supplier receives payment
C. Date of provision of service
D. Earlier of (A) and (B)
Answer: D. Earlier of (A) and (B)
24. What is the time of supply of service if the invoice is issued within 30 days from the date ofsupply of service?
A. Date of issue of invoice by the supplier
B. Date of receipt of payment or date of issue of invoice whichever is later
C. Date of receipt of payment by the supplier
D. Date of receipt of payment or date of issue of invoice whichever is earlier
Answer: D. Date of receipt of payment or date of issue of invoice whichever is earlier
25. What is the time of supply of service if the invoice is not issued within 30 days from the date ofsupply of service and no advance payments are received?
A. Date of issue of invoice by the supplier
B. Date of completion of supply of service
C. Date of receipt of payment by the supplier
D. Date of receipt of payment or date of issue of invoice whichever is earlier
Answer: B. Date of completion of supply of service
26. What is the time of supply of service for the supply of taxable services up to ` 1000 in excess ofthe amount indicated in the taxable invoice?
A. At the option of the supplier – Invoice date or Date of receipt of consideration
B. Date of issue of invoice
C. Date of receipt of consideration
D. Date of entry in books of account
Answer: A. At the option of the supplier – Invoice date or Date of receipt of consideration
27. How is the date of receipt of consideration by the supplier determined?
A. Date on which the receipt of payment is entered in the books of account
B. Date on which the receipt of payment is credited in the bank account
C. Earlier of (A) and (B)
D. (A) and (B) whichever is later
Answer: C. Earlier of (A) and (B)
28. Value of services rendered is ` 1,18,000. Date of issue of invoice is 5th Sept. 2019. Advance received is ` 20,000 on 20th August 2018. Balance amount received on 7th Sept. 2019. What is the TOS of service?
A. 5th Sept. 2019 – ` 1,18,000
B. 20th August 2019 – ` 1,18,000
C. 20th August 2019 – ` 20,000 and 5th Sept. 2019 – ` 98,000
D. 20th August 2019 – ` 20,000 and 7th Sept. 2019 – ` 98,000
Answer: C. 20th August 2019 – ` 20,000 and 5th Sept. 2019 – ` 98,000
29. Determine the TOS in accordance with provisions of CGST Act, 2017.Date of actual supply of service – 10th Nov. 2019 Date of Invoice – 30th Nov. 2019 Date on which payment received – 15th Dec. 2019
A. 10th Nov. 2019
B. 30th Nov. 2019
C. 15th Nov. 2019
D. 10th Dec. 2019
Answer: B. 30th Nov. 2019
30. Determine the TOS in accordance with provisions of CGST Act, 2017Date of actual supply of service – 10th Nov. 2019 Date of Invoice – 30th Nov. 2019 Date on which payment received – 15th Nov. 2019
A. 10th Nov. 2019
B. 30th Nov. 2019
C. 15th Nov. 2019
D. 10th Dec. 2019
Answer: C. 15th Nov. 2019
31. Determine the TOS in accordance with provisions of CGST Act, 2017Date of actual supply of service – 10th Nov. 2019 Date of Invoice – 12th Dec. 2019 Date on which payment received – 30th April 2020
A. 10th Nov. 2019
B. 12th Dec. 2019
C. 30th April 2020
D. 10th Dec. 2019
Answer: A. 10th Nov. 2019
32. Determine the TOS in accordance with provisions of CGST Act, 2017Date of actual supply of service – 10th Nov. 2019 Date of Invoice – 22th Dec. 2019 Date on which payment received – 12th Dec. 2019
A. 10th Nov. 2019
B. 22th Dec. 2019
C. 12th Dec. 2019
D. 10th Dec. 2019
Answer: A. 10th Nov. 2019
33. From the following information determine the reverse charge basis.Date of Invoice : 30-1-2019 Date of completion of service : 30-1-2019 Date of payment by recipient : 10-2-2019 Entry for receipt of service in recipient’s books : 12-2-2019
A. Date of Invoice : 30-1-2019
B. Date of payment by recipient : 10-2-2019
C. Entry for receipt of service in recipient’s books : 12-2-2019
D. None of the above
Answer: B. Date of payment by recipient : 10-2-2019
34. If Supply of Services has ceased under a contract before the completion of supply:
A. Invoice has to be issued within 30 days from the date of cessation
B. Invoice has to be issued at the time of cessation to the extent of the supply effected
C. Invoice has to be issued for the full value of the contract after deducting a percentage thereof as prescribed
D. None of the above
Answer: B. Invoice has to be issued at the time of cessation to the extent of the supply effected
35. The tax invoice should be issued the date of supply of service.
A. Within 30 days from
B. Within 2 months from
C. Within 15 days from
D. On
Answer: A. Within 30 days from
36. In case of taxable supply of services, invoice shall be issued within a period of from thedate of supply of service.
A. 30 day
B. 45 days
C. 60 days
D. 90 days
Answer: A. 30 day
37. Continuous supply of services” means a supply of services who provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding MONTHS with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify
A. Three
B. Four
C. Six
D. Twelve
Answer: A. Three
38. In case of continuous supply of services, where due date of payment is ascertainable from the contract, invoice shall be issued
A. before or at the time when the supplier of service receives the payment
B. on or before the due date of payment
C. either (a) or (b)
D. none of the above
Answer: B. on or before the due date of payment
39. In case of continuous supply of services, where due date of payment is not ascertainable from the contract, invoice shall be issued
A. before or at the time when the supplier of service receives the payment
B. on or before the due date of payment
C. either (a) or (b)
D. none of the above
Answer: A. before or at the time when the supplier of service receives the payment
40. Minimum Service periods required to constitute a continuous supply of services with periodicpayment
A. Exceeding 6 month
B. 6 months
C. Exceeding 3 months
D. 3 months
Answer: C. Exceeding 3 months
41. What is the time of supply of service in case of reverse charge mechanism?
A. Date of payment as entered in the books of account of the recipient
B. Date immediately following 60 days from the date of issue of invoice
C. Date of invoice
D. Earlier of (a) and (b)
Answer: D. Earlier of (a) and (b)
42. From the following information determine the TOS of goods where goods are taxed on reversecharge basis Date of issue of invoice by the supplier – 30th Nov. 2019 Date of receipt of goods – 30th Nov. 2019 Date of payment by the recipient – 10th Dec. 2019 Entry of receipt of services in the recipient’s BOA – 12th Dec. 2019
A. 30th Nov. 2019
B. 10th Dec. 2019
C. 12th Dec. 2019
D. 30th Dec. 2019
Answer: A. 30th Nov. 2019
43. From the following information determine the reverse charge basis. Date of Invoice : 30-1-2019 Date of completion of service : 30-1-2019 Date of payment by recipient : 15-1-2019 Entry for receipt of service in recipient’s books : 30-1-2019
A. Date of Invoice : 30-1-2019
B. Date of payment by recipient : 15-1-2019
C. Either of the above
D. None of the above
Answer: B. Date of payment by recipient : 15-1-2019
44. What is the time of supply of service in case an associated enterprise receives services from theservice provider located outside India?
A. Date of entry in the books of account of associated enterprise (recipient)
B. Date of payment
C. Earlier of (a) and (b)
D. Date of entry in the books of the supplier of service
Answer: C. Earlier of (a) and (b)
45. A Ltd. is located in India and W Ltd. located in USA are associated enterprises (as A Ltd. holds 51% of the shares of W Ltd.). W Ltd. provides some technical services to A Ltd. in India. From the following details, determine the TOS for A Ltd. (as importation of services is the case of RCM) Agreed Consideration – $ 10,000. Date on which services are supplied on W Ltd. – 16th Dec. 2019 Date on which invoice is sent by W Ltd. – 19th Dec. 2019 Date of entry in the Books of Account of A Ltd. – 30th Dec. 2019 Date on which payment is made by A Ltd. – 23rd March 2020
A. 16th Dec. 2019
B. 19th Dec. 2019
C. 30th Dec. 2019
D. 23rd March 2020
Answer: C. 30th Dec. 2019
46. What is the time of supply of vouchers in respect of services when the supply with respect to thevoucher is identifiable?
A. Date of issue of voucher
B. Date of redemption of voucher
C. Earlier of (a) and (b)
D. (a) and (b) whichever is later
Answer: A. Date of issue of voucher
47. There was increase in tax rate from 20% to 24% w.e.f. 1.09.2019. Which of the following rate isapplicable when services are provided after change in rate of tax in September 2019, but invoice issued and payment received, both in August, 2019 :
A. 20% as it is lower of the two
B. 24% as it is higher of the two
C. 20% as invoice and payment were received prior to rate change
D. 24% as the supply was completed after rate change
Answer: C. 20% as invoice and payment were received prior to rate change
48. There was increase in tax rate from 20% to 24% w.e.f. 1.09.2019. Which of the following rate is applicable when services provided, and invoice raised after change in rate of tax in September, 2019, but payment received in August 2019 :
A. 20% as it is lower of the two
B. 24% as it is higher of the two
C. 20% as payment (being one of the factors) was prior to rate change
D. 24% as invoice was issued in the period during which supply is completed
Answer: D. 24% as invoice was issued in the period during which supply is completed
49. There was increase in tax rate from 20% to 24% w.e.f. 1.9.2019. Which of the following rate isapplicable if the supplier has opted for composition levy and invoice was issued after change in rate of tax in September, 2019 but payment received, and goods supplied in August, 2019 :
A. 20% as it is lower of the two
B. 24% as it is higher of the two
C. 20% as payment was received in the period during which the supply was effected
D. 24% as invoice being one of the factors was issued after rate change
Answer: C. 20% as payment was received in the period during which the supply was effected