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Invoice is the main criteria for deciding Time of Supply of Goods and Services
As per section 31(1), A registered assessee supplying taxable GOODS is required to issue invoice BEFORE OR AT THE TIME OF
(i) Removal of Goods where supply involves movement of Goods; or
(ii) Delivery of Goods in any other cases
As per section 31(2), A registered assessee supplying taxable SERVICES is required to issue invoice BEFORE OR AFTER COMPLETION OF SERVICE, but within 30 days after completion of service (45 days in case of Banking and Financial Institutions)
Time of Supply of Goods: Normal Charge
The liability of pay GST on goods arises at the Time of Supply. The Time of Supply of Goods shall be EARLIER OF:
(i) Date of issue of Invoice/ last date on which invoice should be issued; or
(ii) Date of receipt of payment
Time of Supply of Goods: Reverse Charge
Where the GST is to be paid by recipient of the Goods, the Time of Supply shall be EARLIER OF:
(i) Date of receipt of Goods; or
(ii) Date of making payment; or
(iii) 30days from the date of issue of invoice
Time of Supply of Services: Normal Charge
The liability of pay GST on Services arises at the Time of Supply. Hence, Time of Supply of Services in the following cases will be as under :
(A) If Invoice is issued within period under section 31(2), then Time of Supply of Services shall be EARLIER OF:
(i) Date of issue of Invoice; or
(ii) Date of receipt of payment
(B) If Invoice is not issued within period specified under section 31(2), then Time of Supply of Services shall be EARLIER OF:
(i) Date of Completion of service; or
(ii) Date of Receipt of payment
Time of Supply of Services: Reverse Charge
Where the GST is to be paid by recipient of the Services, the Time of Supply of Services shall be EARLIER OF:
(i) Date of making payment; or
(ii) 60 days from the date of issue of invoice
(Author Deepak Joshi is a CA Final Student and can be reached at deepakjoshi726@hotmail.com . Any correction and feedback would be greatly appreciated)
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