Brief note on Time of Supply of goods or services under GST

Time of Supply In case of goods

General Provision

The time of supply shall be earliest of following:

• Date of issue of invoice or last date upto which notice required to issue or
• Date on which payment receive by supplier

Notes:

1. Date on payment received by supplier shall be earliest of following=

• Date of entry in books of account of supplier or
• date on which amount debited in bank

2. If supplier receives amount upto 1,000 in excess of invoice amount = Time of supply shall be invoice issue date in respect of excess amount

Specific Provision

1. In case of tax is paid or to be paid on reverse basis

Time of Supply shall be the earliest of following:

• Date of receipt of goods Or
• Date of entry in of payment receipt in books of supplier or payment debited into book whichever is earlier Or
• Date immediately following 30 days from the date of tax invoice or any other document

Note: If time of supply can’t be determined as per above then date of entry of supply in the books of recipient is the time of supply.

2. In case of supply of voucher by supplier

Time of Supply shall be

• Date of issue of voucher if supply identifiable
• In any other case date of redemption of voucher

Note:

1. If time of supply can’t be determine as per general and specific provision then

• If return filed on Qtr Basis = date of return filed
• In any other case = date of deposit of tax

2. If case of additional amount received like interest, penalty

Time of supply shall be date on which supplier receive amount.

Time of Supply In case of Service

General Provision

The time of supply shall be:

• Date of issue of invoice if invoice issue within prescribed time or Date of receipt of payment whichever is earlier
• Date of provision of service if invoice is  issue within prescribed time or Date of receipt of payment whichever is earlier
• If any other case, the date on which receipt show receipt of service in his books

Notes:

1. Date on payment received by supplier shall be earlier of following=

• Date of entry in books of account of supplier or
• date on which amount debited in the bank

2. If supplier receives amount upto 1,000 in excess of invoice amount = Time of supply shall be invoice issue date in respect of excess amount

Specific Provision

1. In case of tax is paid or to be paid on reverse basis

Time of Supply shall be the earliest of following:

• Date of entry of payment receipt in books of supplier or payment debited into bank whichever is earlier Or
• Date immediately following 60 days from the date of tax invoice or any other document

Note: If time of supply can’t be determined as per above then date of entry in the books of recipient is the time of supply.

2. In case of supply by associated companies where the supplier of service is located outside India

Time of supply shall be the date of entry in the books of recipient or date of payment whichever is earlier.

3. In case of supply of voucher by supplier

Time of Supply shall be

• Date of issue of voucher if supply identifiable
• In any other case date of redemption of voucher

Notes:

1. If time of supply can’t be determine as per general and specific provision then

• If return filed on Qtr Basis = date of return filed
• In any other case = date of deposit of tax

2. If case of additional amount received like interest, penalty

Time of supply shall be date on which supplier receive amount

Check New GST Rate Chart 2017 here