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Time of Supply of Goods

Time of Supply of Goods

time of supply gst

GST is paid at the time of supply of goods. And therefore it is important to decide that at what point in time goods shall be said to have been supplied.

The time of supply of goods shall be the date of issue of invoice by the supplier. But if the supplier does not raise the invoice on the last date on which he is required to raise the invoice then the last date on which he is required to raise invoice shall be considered as time of supply irrespective of the fact that he has not raised the invoice. If the supplier receives the payment for the goods to be supplied on future date then the date on which he receives the payment shall be considered as time of supply.

Here the date of payment means the date on which payment is recorded in books of accounts. But if the payment is received in the bank account prior to recording in books of accounts then date on which the payment is received in bank account shall be the date of payment.

Time of supply in case of goods covered under Reverse Charge Mechanism:

For the supply of goods on which recipient is liable to pay tax i.e. supply of goods under reverse charge mechanism, shall be the date immediately following thirty days from the date of issue of invoice by the supplier. But if the goods are received earlier to the aforesaid date of supply or if the payment is made before the aforesaid date of supply then such earlier date shall be considered as the time of supply of goods in case of reverse charge mechanism. And where it is not possible to get time of supply as aforementioned ways then the time of supply shall be the date of entry in the books of account of the recipient of supply.

Date of payment shall be ascertained as above mentioned method in this case also.

Time of supply in case of vouchers of supply:

In case of supply of vouchers by a supplier, the time of supply shall be the date of issue of voucher, if the supply is identifiable at that point or the date of redemption of voucher, in all other cases.

Where it is not possible to determine the time of supply as per any of the above method then the time of supply shall, in a case where a periodical return has to be filed, be the date on which such return is to be filed or in any other case, be the date on which the tax is paid.

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 the supplier receives such addition in value.

Time of supply of service [section 13 of CGST act, 2017]

GST is paid at the time of supply of service. And therefore it is important to decide that at what point in time service shall be said to have been supplied.

A registered person supplying taxable services shall issue a tax invoice, before or after the provision of service but not later than 30 days from the provision of service (in general case).

The time of supply of services shall be the date of issue of invoice by the supplier, if the invoice is issued within the timeline as mentioned above. But if the invoice is not issued within the timeline as mentioned above, then the date of provision of service shall be considered as the time of supply of service. Further if the payment is received before the date of invoice or before the date of provision of service then such the date of payment shall be considered as the time of supply of service.

If time of supply, by aforesaid mentioned method, cannot be ascertained then the date on which payment is recorded in books of accounts shall be the time of supply of service.

Again the date of payment means the date on which payment is recorded in books of accounts. But if the payment is received in the bank account prior to recording in books of accounts then date on which the payment is received in bank account shall be the date of payment.

Time of supply in case of services covered under Reverse Charge Mechanism:

For the supply of services on which recipient is liable to pay tax i.e. supply of service under reverse charge mechanism, the time of supply shall be the date immediately following sixty days from the date of issue of invoice by the supplier. But if payment is made before issue of invoice or if the payment is recorded in books of accounts before issue of invoice then such earlier date shall be considered as time of supply of service.

But where it is not possible to determine the time of supply as per aforementioned method, the time of supply shall be the date of entry in the books of account of the recipient of supply.

In case of supply of service by associated enterprises, where the such associated enterprise is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier.

Time of supply in case of vouchers of service:

In case of supply of vouchers of service, the time of supply shall be the date of issue of voucher, if the supply is identifiable at that point or the date of redemption of voucher, in all other cases.

Again in case of supply of service, where it is not possible to determine the time of supply as per any of the above method then the time of supply of service shall, in a case where a periodical return has to be filed, be the date on which such return is to be filed or in any other case, be the date on which the tax is paid.

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 the supplier receives such addition in value.

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Summary
Time of Supply of Goods [section 12 of CGST act, 2017]
Article Name
Time of Supply of Goods [section 12 of CGST act, 2017]
Description
GST is paid at the time of supply of goods. And therefore it is important to decide that at what point in time goods shall be said to have been supplied.
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Publisher Name
UnboxGST.com
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