Explore Section 12 of CGST Act 2017, focusing on the time of supply of goods and answering FAQs to understand tax liability, invoice, payments, reverse charge, vouchers, and more.
What does section 12 say: Section 12 talks about time of supply of goods that is when the liability to pay tax arises on goods.
FAQS on Section 12 of CGST Act 2017: Time of Supply of Goods
Q.1 What is Section 12?.
Ans. Section 12 talks about time of supply of goods to determine the due date of tax liability which arises on supply of goods.
Q.2 What shall be time of supply of goods?.
Ans. Date of Issue of Invoice or Date of receipt of payments whichever is earlier.
Q.3 What shall be Date of Receipt of Payments?.
Ans. Date of Payment entered in Books of Accounts or Date of Payment Credited in Bank account whichever is earlier.
Q.4 What shall be date in case of reverse charge basis?.
Ans. Date of Receipt of Goods; or
Date of payment entered in Books of Accounts or Date of Payment Credited in Bank whichever is earlier; or
Date immediately following thirty days from the date of issue of invoice or any other documents
Whichever is earlier of above three points covered.
Q.5 What shall be the Date in Case of Voucher?.
Ans. Date of Issue of Voucher or Date of Redemption of Voucher whichever is earlier.
Q.6 What shall be the Date where is not possible to determine?.
Ans. In case Periodical Return filed then Date of on which return is filed.
In any other Case Date of Payment of Tax.
Q.7 Definition of Goods?.
Ans. Goods means every kind of movable property other than money and securities but includes actionable claims ,growing crops, grass and things attached to or forming part of land which are agreed to be severed before supply or under a contract of supply.
Q.8 Definition of Voucher?.
Ans. Voucher means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument.
Q.9 Definition of Supplier?.
Ans. Supplier in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied.
Q.10 Definition of Periodical Return ?.
Ans. Valid Periodical return means return filed under sub section (1) of Section 39 on which self assessed tax has been paid in full.
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Extract of Section 12 of CGST Act 2017: Time of Supply of Goods
“(1) The liability to pay tax on goods shall arise at the time of supply, as determined in accordance with the provisions of this section.
(2) The time of supply of goods shall be the earlier of the following dates, namely:— (a) the date of issue of invoice by the supplier or the last date on which he is required, under [******]32 section 31, to issue the invoice with respect to the supply; or (b) the date on which the supplier receives the payment with respect to the supply:
Provided that where the supplier of taxable goods receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount.
Explanation 1.––For the purposes of clauses (a) and (b), ―supply‖ shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment.
Explanation 2.––For the purposes of clause (b), ―the date on which the supplier receives the payment‖ shall be the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account, whichever is earlier.
(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earliest of the following dates, namely:— (a) the date of the receipt of goods; or (b) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or (c) 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 where it is not possible to determine the time of supply under clause (a) or clause (b) or clause (c), the time of supply shall be the date of entry in the books of account of the recipient of supply.
(4) In case of supply of vouchers by a supplier, the time of supply shall be— (a) the date of issue of voucher, if the supply is identifiable at that point; or (b) the date of redemption of voucher, in all other cases.
(5) Where it is not possible to determine the time of supply under the provisions of sub-section (2) or sub-section (3) or sub-section (4), the time of supply shall– – (a) in a case where a periodical return has to be filed, be the date on which such return is to be filed; or (b) in any other case, be the date on which the tax is paid.
(6) 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.
Now we have examined the GST law reference which talks about the Time of Supply of Goods. Let us understand the above law in some Questions and Answers format.
Disclaimer: The above said article is author view point only please refer respective sections ,rules framed under gst law.
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