In terms of the proviso to Section 12(2) (b) of the CGST Act, 2017, the time of supply with respect to the amount received in excess up to ` 1,000/- of the amount indicated in tax invoice, shall at the option of the supplier, be the date of issue of invoice, in respect of such excess amount. Thus, if the supplier opts for this method, the time of supply will be the date when the supplier raises invoice in respect of the excess amount. Where the excess amount is received exceeds ` 1,000/-, the time of supply of goods shall be the date of receipt i.e., earliest of the following:
(a) Date on which payment is entered in books of accounts of the supplier; or
(b) Date on which payment is credited to the bank account.
Accordingly, the time of supply in each of the scenarios given in the example would be as follows:
Scenario 1: The time of supply of goods with respect to the amount of ` 500/- received
in excess shall be the date of invoice whenever raised by the supplier in respect of the excess amount.
Scenario 2: The time of supply would be as follows:
| Date on which payment is entered in books of accounts of the supplier | August 30, 2017 | Time of supply shall be August 28,2017 |
| Date on which payment is credited to the bank account | August 28, 2017 |
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME FOR SUPPLY OF GOODS : FAQ NO. 8)