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Delta Consultants completed a management consultancy assignment on 15th July. The invoice was issued on 28th August. Payment was credited to Delta Consultants' bank account on 20th August, though entered in the books of account on 22nd August. What is the Time of Supply under Section 13(2) of the CGST Act, 2017?

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — 15th July (Date of provision of service)

All Options:

  • A15th July (Date of provision of service) ✓
  • B20th August (Date of credit in bank account)
  • C22nd August (Date of entry in books of account)
  • D28th August (Date of issue of invoice)

Detailed Solution & Explanation

Application of Section 13(2) of the CGST Act, 2017:
1. **Invoice Deadline**: Under Section 31(2) read with Rule 47, invoice must be issued within 30 days of completion of service:
Deadline=15th July+30 days=14th AugustDeadline=15\displaystyle \text{Deadline} = 15th July+30\displaystyle \text{th July} + 30 days=14\displaystyle \text{ days} = 14th August\displaystyle \text{th August}
2. **Actual Invoice Date**: 28th August (issued AFTER the 30-day window).
3. **Rule for Delayed Invoice (Section 13(2)(b))**: Time of supply is earlier of:
- Date of provision of service: **15th July**
- Date of payment: Earlier of entry in books (22nd August) or bank credit (20th August) = **20th August**
Time of Supply=min⁡(15th July,20th August)=15th JulyTime of Supply=min⁡\displaystyle \text{Time of Supply} = \min(15th July\displaystyle \text{th July}, 20th August\displaystyle \text{th August}) = 15th July\displaystyle \text{th July}
Hence, **Option A** is the correct answer.

Key Concepts to Understand

Supply

Total amount of a good available to consumers.

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