EXAMPLE-43

Reliance sent postpaid bill on 10.09.2017 for Rs. 880 Rs + IGST @18% = Rs. 1038 and customer paid amount of Rs. 1100. When will be the time of Supply of Rs. 62?

Answer

According to proviso to section 13((2)(c),if the supplier receives an amount upto Rs one thousand in excess of the payable amount, then the time of supply at the option of supplier to the extent of  such excess amount will be the date of issue of invoice relating the excess amount. This means GST is not payable on Rs 62 at the time of payment on above bill. GST would be payable when such excess amount  is adjusted against next month’s invoice.