Introduction: The concept of time of supply holds significance in GST regulations for all transactions conducted by providers of goods and services. It refers to the specific moment when goods are delivered or services are deemed to be rendered, determining the taxpayer’s obligation to settle taxes. This article delves into the specifics of time of supply for goods and services under the Central Goods and Services Tax (CGST) Act, 2017.
Let us understand the concept of time of supply with clear concept laid under down, which is as follow
Page Contents
- Time of Supply under Forward Charge:[1]
- Time Limit for Raising Invoices: [4]
- Time of Supply under Reverse Charge: [6]
- Time of Supply of Vouchers Exchangeable for Goods and Services:[7]
- Time of Supply of Goods and Services in Residual Cases [8]
- Time of Supply for Addition in Value by Way of Interest/Late/Fee/Penalty for Delayed Payment of Consideration [9]
Time of Supply under Forward Charge:[1]
|
Time of supply of goods (Section 12(2))[2] |
Time of supply of Service (Section 13(2))[3] |
| The time of supply shall be the earliest of the following: –
a) Date of issue of the invoice by the supplier or last date on which he is required to under section 31, to issue invoice. b) Dates on which the supplier receives the payment. Note- No GST at the time of receipt of advances for supply of goods. |
a) Invoices issued within the same time period prescribe under section 31
Earliest of the following: –
b) Invoices not issued within the time period prescribe under section 31 Earliest of the following: –
c) When the above events are uncertain able
|
Time Limit for Raising Invoices: [4]
|
Supply of Goods (Section 31(1))[5] |
Supply of Services (Section 31(2)) |
| Before or at the time of: –
a) Removal of Goods. b) Delivery of goods or making available thereof to the recipient. |
Before or after the provision of service but within the 30 days from the date of supply of service. |
Time of Supply under Reverse Charge: [6]
|
Time of supply of goods (Section 12(3)) |
Time of supply of Service (Section 13(3)) |
| The time of supply shall be the earliest of the following: –
a) Date of Receipt of goods. b) Date of payment as entered in the books. c) 31st day from the date of issue of invoice by the supplier. |
Supply shall be the earliest of the following: –
a) Date of payment as entered in the books or the date on which account is debited. b) 61st day from the date of issue of invoice by the supplier. Note- Import service from associated enterprises: Date of entry in the books of account of the recipient or the date of payment, whichever is earlier. |
Note- where the above events are ascertainable, the time of supply shall be the date of entry in the books of account of the recipient of supply.
Time of Supply of Vouchers Exchangeable for Goods and Services:[7]
|
Supply of vouchers exchangeable for goods and services (section 12(4) and 13(4)) |
a) Supply of goods or services is identifiable at the time of issue of voucher –
b) Other Cases
|
Time of Supply of Goods and Services in Residual Cases [8]
| Supply of goods and services in residual cases (Section 12(5) AND 13(5)I.E., Where it is not possible to determine the time of supply under the other provision |
a) Where a periodical return is required to be filed
b) Other Cases
|
Time of Supply for Addition in Value by Way of Interest/Late/Fee/Penalty for Delayed Payment of Consideration [9]
- Time of Supply- Date on which the supplier receives such addition in value.
[1] The Central Goods and Services Tax Act, 2017
[2] Section 12 of CGST ACT
[3] Section 13 of CGST ACT
[4] The Central Goods and Services Tax Act, 2017
[5] Section 31 of CGST ACT
[6] The Central Goods and Services Tax Act, 2017
[7] The Central Goods and Services Tax Act, 2017
[8] The Central Goods and Services Tax Act, 2017
[9] The Central Goods and Services Tax Act, 2017
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Author: Yash Bhardwaj – Lawyer, B.A. LL.B
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