In the current article we will discuss about time of supply of goods under GST, this topic is very important as time of supply of goods will decide the liability to be settled in which month and submission of GST Forms.
As per section 12 of CGST Act 2017 the liability to pay tax on goods shall arise at the time of supply as determined in accordance with the provisions of this section
According to 12(2) of CGST Act the time of supply of goods shall be the earlier of the following dates namely:-
- The date of issue of invoice by the supplier or
- The last date on which he is required to issue the invoice with respect to the supply as per sec 31(1)-
- The date on which the supplier receives the payment with respect to the supply
For better understanding of the above provision we should understand section 31(1) to know the last date on which supplier is required to issue the invoice. As per sec 31(1) a registered person supplying taxable goods shall “Before or at the time of”
- Removal of goods for supply to the recipient where the supply involves movement of goods or
- Delivery of goods or making available thereof to the recipient in any other case supplier shall issue by invoice
Vide Notification No. 66/2017-Central Tax Dated 15/11/2017
Any registered person who did not opt for the composition levy under section 10 of the CGST Act , shall pay the central tax on the outward supply of goods at the time of supply as specified in clause (a) of 12(2) of the said act.
Taking together sec 12 and section 31(1) and with the above notification is can be said that time of supply of goods would be earlier of the below:-
- The date of issue of Invoice or
- The last date of invoice as per sec 31(1) which is before or at the time of removal of goods where supply involves movement of goods
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Time of supply of goods in case of Reverse charge
As per 12(3) of the CGST Act 2017 in case of supplies in respect of which tax is paid or is liable to be paid on reverse charge basis then time of supply would be the earliest of the following date:-
- The date of receipt of goods or
- The date of payment as entered in the(i) books of accounts of the recipient or the date on which the (ii) payment is debited in his bank account whichever is earlier or
- The date immediately following thirty days from the date of issue of invoice or any other document by whatever name called in lieu thereof by the supplier
Provided that when it is not possible to determine the time of supply under above clause then the time of supply shall be the date of entry in the books of accounts of the recipient of supply.
Time of supply in case of Vouchers
As per 12(4) of CGST Act ,in case of supply of vouchers by the supplier the time of supply shall be the:-
- The date of issue of voucher if the supply is identifiable at that time or
- The date of redemption of voucher in all the other cases
Residual Case
As per 12(5) of CGST Act, where it is not possible to determine the time of supply under the provision of sub-section 2,3 or 4 the time of supply shall be :-
- In a case where a periodical return has to be filed, be the date on which such return is to be filled or
- In any other case be the date on which tax is paid.
Enhancement in value on account of Interest, late fees etc for delayed payment of consideration
The time of supply to the extent it relates to an addition in value of supply by way of interest, late fees or penalty for delayed payment of any consideration shall be the “Date on which the supplier receives such addition in value”.
In case of any doubts in the current topic or provisions of Indirect taxation (GST and CUSTOMS) then you may contact us at abhutpurv@gmail.com
Author Bio
We have one doubt and need a clarification on cited subjects
1) From Date GST Invoice date what is time Limit to movement of goods
2) shall we raise the invoice and move the goods after 7 or 10 days
3) at time of Movement of Goods shall we raise the GST E-way bill with same invoice date