CMA VIPUL SHAH CS EXECUTIVE FOR JUNE/ DEC 23 TIME & VALUE OF SUPPLY

CHAPTER 7 TIME AND VALUE OF SUPPLY

1) Mr. Ram sold goods to Mr. Shyam worth `5,00,000. The invoice was issued on 15th
November. The payment was received on 30th November. The goods were supplied on
20th November. The time of supply of goods will be:
a. 15th November
b. 30th November
c. 20th November
d. None of the above.

2) Banke Bihari (Pedewala), is a famous sweets maufacturer, located and registered in

Mathura, Uttar Pradesh. He received an order for 200 Kg. of sweets on 2nd
November, 2018 from M / s. Ghoomghoo m Travels (P) Ltd., located and registered
in same locality of Mathura for a total consideration of Rs. 1,00,000/- on occasion
of Diwali festival. All 200 Kg. sweets were delivered to M/s. Ghoomghoom Travels (P)
Ltd. on 5th November, 2018, but without invoice, as accountant of Mr. Banke Bihari
was on leave on that day. However, the invoice was raised for the same on 6th
November, 2018, when the accountant joined the office after leave. Payment in full
was made on 7th November, 2018. Determine the time of supply of goods in this
case.
a. 2nd November, 2018
b. 5th November, 2018
c. 6th November, 2018
d. 7th November, 2018

3) On 04.09.2018, supplier invoices goods taxable on reverse charge basis to ABC & Co.
ABC & Co. receives the goods on 12.09.2018 and makes payment on 30.9.2018.
determine the time of supply. a. 04.09.2018
a. 04.10.2018
b. 12.09.2018
c. 30.09.2018

4) Mr. A, who has opted for composition levy, supplies goods worth Rs. 24,300 to Mr.
B and issues an invoice dated 25.09.2018 for Rs. 24,300. and Mr. B pays Rs. 25,000
on 1.10.2018 against such supply of goods. The excess Rs 700 (being less than Rs.
1,000) is adjusted in the next invoice for supply of goods issued on 5.01.2018.
Identify the time of supply and value of supply:
a. Rs. 25,000 – 1.10.2018
b. For Rs. 24,300 – 25.09.2018 and for Rs. 700 – 1.10.2018

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c. For Rs. 24,300 – 25.09.2018 and for Rs. 700 – 5.10.2018.

d. (b) or (c) at the option of supplier, who has opted for composition levy

5) Mr. X enters into a contract with a client for supply of certain services on
18.12.2017. GST is payable on such services under forward charge. Services are
supplied on 25.12.2017 and invoiced on 05.01.2018. The client makes payment by
cheque for the services on 29.12.2017 and such payment is credited to the bank
account of Mr. X on 06.01.2018. The payment is recorded in the books of account
of the client and Mr. X on 30.12.2017 and 07.01.2018 respectively. The time of
supply of services is:
a. 29.12.2017
b. 30.12.2017
c. 06.01.2018
d. 05.01.2018

6) Value of services rendered is Rs. 1,00,000/. Date of issue of invoice is 5th October
2018. Advance Received is Rs. 25,000/- on 20th September 2018. Balance amount
received on 7th October 2018. What is the time of supply for Rs. 1,00,000/-
a. 5th October 2018 for Rs. 1,00,000/-
b. 20th September 2018 for Rs. 1,00,000/-
c. 20th September 2018- Rs.25,000/- and 5th October 2018 for Rs. 75,000/-
d. 20th September 2018- Rs. 25,000/- and 7th October 2018 for Rs. 75,000/-

7) 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) & (b)
d. (a) & (b) whichever is later

8) ABC Ltd. has purchased for its customers 50 vouchers dated 20.8.2018 worth Rs.100
each from PQR Ltd., a footwear manufacturing company. The vouchers were issued
by ABC Ltd. on 20.09.2018. the vouchers can be encashed at retail outlets of PQR
Ltd. The employees of ABC Ltd. encashed the same on 01.10.2018. Determine the
time of supply of vouchers.
a. 20.08.2018
b. 20.09.2018
c. 01.10.2018
d. Supply is not identified

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CMA VIPUL SHAH CS EXECUTIVE FOR JUNE/ DEC 23 TIME & VALUE OF SUPPLY

9) M/s. Tanatan received testing services from Aquarian Solution (P) Ltd. on 10-May-2018.
The payment was entered in the books of account of M/s. Tanatan on 16-May-2018 and
was credited in the bank account of supplier on 19-May-2018. In the meantime, supplier
issued invoice on 18- May-2018. What will be the time of supply in this case?
a. 10-May-2018
b. 18-May-2018
c. 16-May-2018
d. 19-May-2018

10) What is the time of supply in case of addition in the value of way of interest, late
fee or penalty or any delayed payment of consideration?
a. Last date on which such late fees / penalty has been charged
b. Date of payment of such additional amount
c. Date of collection of whole amount
d. It doesn’t constitute supply

11) Where goods are packed and transported with insurance, the supply of goods, packing
materials, transport and insurance is a composite supply and supply of goods is the
principal supply. Which section will govern the time of supply provisions in this case?
a. Section 12
b. Section 13
c. Section 14
d. Section 15

12) In which of the following situations, ‘Old rate’shall be applicable?

a. When the goods have been supplied before the change in rate of tax but issue of invoice
and receipt of payment is after the change in rate of tax.
b. When the goods have been supplied after the change in rate of tax but issue of invoice and
receipt of payment is before the change in rate of tax.
c. When the supply of goods and issue of invoice has been done after the change in rate of
tax but receipt of payment is before the change in rate of tax.
d. When the supply of goods and receipt of payment has been done after the change in rate
of tax but issue of invoice is before the change in rate of tax.

13) An online portal, Best Info, raises invoice for database access on 21st February, 2017
on Roy & Bansal Ltd. The payment is made by Roy & Bansal Ltd. by a demand draft
sent on 25th February, 2017 which is received and entered in the accounts of Best
Info on 28th February, 2017. Best Info encashes the demand draft and thereafter,
gives access to the database to Roy & Bansal Ltd from 3rd March, 2017. In the
meanwhile, the rate of tax is changed from 1st March 2017. What is the time of supply

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CMA VIPUL SHAH CS EXECUTIVE FOR JUNE/ DEC 23 TIME & VALUE OF SUPPLY

of the service of database access by Best Info?

a. 25th February, 2017
b. 28th February, 2017
c. 21st February, 2017
d. 3rd March

14) In cases of change in rate of tax and amount is credited to the bank account after 4
working days from the date of change in rate of tax, the date of receipt of payment
will be:
a. Date of book entry or date of bank entry, whichever is earlier
b. Date of bank entry
c. Date of book entry
d. Date of book entry or date of bank entry, whichever is later

15) Mr. Tommy entered into a contract for supply of service of exploration of petroleum
crude on 15 -Jan2018. He raised the invoice on 20-Jan-2018 and received the payment
via cheque on 24- Jan-2018which he presented to bank for clearance on the same day.
On 25-Jan-2018, the rate of tax on this service changed from 18% to 12%. The
payment was credited in his bank account on 31-Jan-2018, assuming 27-Jan-2018, 28-
Jan-2018, 29-Jan-2018, and 30-Jan-2018 to be working days. The service was
rendered to the recipient on 1-Feb-2018. What will be the rate of tax and time of
supply in this case?
a. 18%, 20-Jan-2018
b. 18%, 24-Jan-2018
c. 12%, 31-Jan-2018
d. 12%, 1-Feb-2018

16) A Chartered Accountant issued following bill –

(i) Professional fees – Rs1,00,000
(ii) Out of pocket expenses – Rs 10,000
(iii) MCA for e-filing of documents on MCA portal – Rs.5,000. His value of service for tax
purposes is:
a. Rs. 1,15,000
b. Rs.1,10,000
c. Rs.1,05,000
d. Rs.1,00,000

17) Jiffy foods Pvt. ltd gives discount of 30% on the list price to its distributors as per its
contract. As per invoice raised on the items supplied per carton, the list price on the
same amounts to INR 500. What shall be the taxable value of such supply, given

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CMA VIPUL SHAH CS EXECUTIVE FOR JUNE/ DEC 23 TIME & VALUE OF SUPPLY

that the discount is allowed at the time of supply and shown in invoice?
a. INR 300
b. INR 350
c. INR 500
d. None of the above

18) Mr, A is selling a product for Rs.1,050 inclusive of GST. Rate of CGST and SGST
will be 2.5% each. Determine the value of supply.
a. INR 1,000
b. INR 1,025
c. INR 1,050
d. None of the above

19) What shall be the value of a token, voucher, coupon or stamp which is redeemable
against a supply of goods and services?
a. Money value of such token, voucher, coupon or stamp
b. Money value of the goods or services or both redeemable against such token, voucher,
coupon, or stamp
c. Both (a) and (b)
d. None of the above

20) Determine the value of taxable supply as per provisions of section 15 of the CGST
Act, 2017? Contracted value of supply of goods (including GST @ 18%) Rs.11,00,000
Not included in above are:
i) Commission paid to agent by recipient on instruction of supplier Rs.5,000
ii) Freight and insurance charges paid by recipient on behalf of supplier Rs. 75,000
a. Rs.11,00,000
b. Rs.11,80,000
c. Rs.10,00,000
d. Rs.11,75,000

21) Mr. A makes a supply of 30 shoes to Mr. B. Here both are related persons. Mr. B
as such intends to further supply such shoes to his customers for Rs. 3,000. Open market
value of such shoes is Rs.3,000. In such case, what shall be the value of supply per
shoes?
a. Rs. 60,000 or Rs.54,000
b. Rs. 3,000
c. Rs. 2,700
d. (b) or (c) depending on the option of the supplier

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CMA VIPUL SHAH CS EXECUTIVE FOR JUNE/ DEC 23 TIME & VALUE OF SUPPLY

22) A Ltd. sold a product for Rs.34,000 to Mr. B. Open market value of such supply is Rs.
60,000. Mr. B is selling the same like kind of product to his consumer for Rs.60,000.
Mr. B holds 30% share in A Ltd. Determine the value of supply for the purpose of levy
of GST.
a. INR 34,000
b. INR 54,000
c. INR 60,000
d. Either (b) or (c), depending on the option of Mr. A.

23) What shall be the value of supply in case of lottery run by the state government?
a. 100/112 of the face value of ticket
b. price as notified in the official gazette by the organizing state
c. 100/114 of the face value of ticket
d. 100/112 of the face value of ticket or price as notified in the official gazette by the
organizing state, whichever is higher

24) What shall be the value of supply in case of Life Insurance Business services?
a. The gross premium charged from a policy holder reduced by the amount allocated for
investment, or savings on behalf of the policy holder
b. In case of single premium annuity policies, 10% of single premium charged from the
policy holder
c. 25% of the premium charged from the policy holder in the first year and 12.5% of the
premium charged from the policy holder in subsequent years
d. Either of the above options

25) What would be the value of supply in case of exchange of currency from or to Indian
Rupees (INR)?
a. 1% of the gross amount of Indian Rupees provided or received by the person changing the
money
b. 1% of the lesser of the two amounts the person changing the money would have received
by converting any of the two currencies into Indian Rupees on that day at the reference
rate provided by RBI.
c. Difference in the buying rate / selling rate and the RBI reference rate multiplied by the
total units of the currency
d. Any of the above

26) Samriddhi Advertisers conceptualized and designed the advertising campaign for a
new product launched by New Moon Pvt Ltd. for a consideration of Rs.5, 00,000.
Samriddhi Advertisers owed Rs. 20,000 to one of its vendors in relation to the
advertising service provided by it to New Moon Pvt Ltd. Such liability of Samriddhi

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Advertisers was discharged by New Moon Pvt Ltd. New Moon Pvt Ltd. delayed the
payment of consideration and thus, paid Rs. 15,000 as interest. [ICAI Material]
Determine the value of taxable supply made by Samriddhi Advertisers.
a. 5,35,000
b. 5,32,712
c. 5,37,500
d. None of the above

27) An Indian company is required to pay Rs.1,00,000 to a German company for technical
knowhow. It deduced Rs.10,000 as income tax at source and paid Rs. 90,000 to the
German company. On what amount the Indian company will be liable to pay GST under
reverse charge?
a. 1,00,000
b. 90,000
c. 1,10,000
d. None of the above

28) Vipul Shah Ltd. owns coaching institute in Pune, the institute charges Rs. 12,000 per
student for giving training in GST. However this training programme is subsidized by
different institutes as follows- State Government of Maharashtra: Rs.300 per
student, Veer chargeable trust: Rs100 per student and Government of US: Rs100 per
student. consequently, Vipul Shah Ltd. charges Rs 11,000 per student. Determine
the value of taxable supply + GST payable@ 18 %.
a. Value of taxable supply 11,200, GST2,016
b. Value of taxable supply 11,100, GST1,998
c. Value of taxable supply 11,000, GST1,980
d. Value of taxable supply 12,000, GST2,160

29) M/s Sam pvt ltd supplied tool parts to ABC pvt ltd for a consideration of Rs.2,50,000
exclusive of taxes. ABC pvt ltd also gave some material to M/s Sam pvt ltd as
consideration for such supply whose value was Rs. 50,000exclusive of taxes. M/s Sam
has supplied the same goods to another person at a price of Rs. 3,25,000 inclusive of
GST @ 18%. Determine the value of supply.
a. 2,50,000
b. 2,75,000
c. 3,00,000
d. 2,75,424

30) Mr Rahul has taken a loan on 01-09-2017 from Smart ltd. worth of ` 5,00,000 and he
purchased a Swift Car. He defaulted in paying the loan amount and subsequently the

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CMA VIPUL SHAH CS EXECUTIVE FOR JUNE/ DEC 23 TIME & VALUE OF SUPPLY

lending company repossessed the Swift Car from Mr Rahul on 01.04.2019. The said
goods were sold by the company on 05.06.2019. Determine the purchase value for
lending company.
a. 3,00,000
b. 2,50,000
c. 3,50,000
d. 2,75,000

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ANSWERS

QUE ANS QUE ANS QUE ANS

1 A 11 A 21 D
2 B 12 B 22 D
3 C 13 C 23 D
4 D 14 B 24 D
5 D 15 C 25 D
6 C 16 B 26 B
7 A 17 B 27 A
8 B 18 A 28 A
9 B 19 B 29 D
10 B 20 C 30 A

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