As we all are aware that it is vital time to all the person of India to know the exact date of point of taxation under the GST Laws. Everyone is eager to know on which date CSGT, SGST and/or UTGST and IGST shall be payable and how he done the several compliances under the GST Laws.

I have prepared a detailed explication on the TIME OF SUPPLY OF GOODS / SERVICES which may help to all of you.

TIME OF SUPPLY OF GOODS:

According to Sub-Section 2 of Section 12 of CGST, the time of supply of Goods shall be the earlier of the following dates-

TIME OF SUPPLY

(UNDER FORWARD CHARGE MECHANISM)

Date of issue of invoice by the supplier or the last date on which he is required, to issue the invoice (under section 31) with respect to the supply  

OR

Date on which the supplier receives the payment with respect to the supply
Due date for issue of invoice by the supplier u/s 31:

A. Before or at the time ofRemoval of Goods for supply to the recipient, where the supply involves movement of goods, or

B. Before or at the time ofDelivery of Goods OR Making Available thereof to the recipient, in any other case

C. Goods sent or taken on approval basis for sale or return – Earlier of Time at which it becomes to known that the supply has been taken place OR 6 months from date of removal

D. Notified Categories of supplies – Time to be specified by the Govt.

Exception: when amount in excess of ` 1000 is received, the time of supply in respect of such excess at the option of the supplier shall be the date of such invoice.

Explanation: Date of receipt of payment means – Date on which payment is ENTERED in his books of account OR Date on which payment is CREDITED to his bank account, (whichever is earlier)

Illustration 1: Time of supply of Goods (Case A and B)-

S.No. Particulars Date of Removal Date of

Invoice

Date made available to Recipient Date of receipt of Payment Time of supply
1 Supply involves movement of Goods
Case-I 21.04.2017 22.04.2017 21.04.2017 20.06.2017 21.04.2017
Case-II 21.05.2017 20.05.2017 26.05.2017 10.08.2017 20.05.2017
Case-III 10.06.2017 11.06.2017 16.06.2017 09.05.2017 09.05.2017
2 Case Apart from 1 NA 18.05.2017 16.05.2017 21.07.2017 16.05.2017

Illustration 2: Time of supply of Goods sent / taken on approval basis or sale / return or similar terms [Read with Section 31(7)] –

S.No. Particulars Date of Removal Date of receipt by recipient Date of Approval Date of expiry of 6 months from the date of removal Time of supply
1 Case-I 10.07.2017 20.07.2017 11.08.2017 09.01.2018 11.08.2017
2 Case-II 14.06.2017 19.06.2017 awaited 13.12.2017 13.12.2017

Time of supply of Goods under Sub-Section 3 of Section 12 of CGST Act, the time of supply of Goods shall be the earlier of the following dates-

Time of Supply

(Under Reverse Charge Mechanism)

Possible to determine the time of supply – under clause (a) or (b) or (c) Not Possible to determine the time of supply – under clause (a) or (b) or (c)
Clause (a) – the date of the receipt of goods

OR

Clause (b) – the date on which the payment is made,

OR

Clause (c) – the date immediately following 30 days from the date of issue of invoice by the supplier or any other documents

(Whichever is earlier)

Date of entry in the books of accounts of the recipient of supply

 

Explanation: Date of receipt of payment means – Date on which payment is ENTERED in his books of account of the RECIPIENT OR Date on which payment is DEBITED in his bank account, (whichever is earlier)

Illustration: – Time of supply of Goods

S.No. Particulars Date of receipt of goods Date of Payment Date of issue of Invoice by supplier Date of entry in BOA of the Recipient Time of supply
1 Case-I 21.04.2017 22.04.2017 23.04.2017 22.04.2017 21.04.2017
2 Case-II 21.05.2017 20.05.2017 26.05.2017 20.05.2017 20.05.2017
3 Case-III (date immediately following 30 days from the date of issue of invoice by the supplier) 02.07.2017 11.07.2017 01.06.2017 11.07.2017 01.07.2017
4 Case-IV NA NA NA 25.06.2017 25.06.2017

The time of supply of Goods in accordance with the provisions of Sub-Section 4 and 5 of Section 12 of CGST Act:

TIME OF SUPPLY
U/s 12(4) U/s 12(5)
In case of supply of vouchers If it is not possible to determine the time of supply under the provisions of sub-section (2), (3) or (4)
the date of issue of voucher, if the supply is identifiable at that point

OR

the date of redemption of voucher, in all other cases

in a case where a periodical return has to be filed, the date on which such return is to be filed

OR

in any other case, the date on which the CGST/SGST is paid

The Time of Supply under Sub-Section 6 of Section 12 of CGST Act –

Special charges imposed for delay in payment of consideration will enjoy the facility of time of supply being date of receipt of the charges imposed, that is, cash-basis of payment of GST (Charges such as Interest, late fees or penalty for delayed payment of any consideration).

TIME OF SUPPLY OF SERVICES:

As per Sub-Section 2 of Section 13 of CGST Act, the time of supply of services shall be the earlier of the following dates:

Time of Supply

(under Forward charge Mechanism )

Case I- Clause (a) Case II- Clause (b) Case III- Clause (c)
When Invoice issued within prescribed time limit U/s 31 When Invoice not issued within prescribed time limit U/s 31  

the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not apply

Date of Invoice

OR

Date of Receipt of payment

(Whichever earlier)

Last date on which invoice required to be issued u/s 31

OR

Date of Receipt of payment

(Whichever earlier)

Exception: When amount in excess of ` 1000 is received, the time of supply in respect of such excess at the option of the supplier shall be the date of such invoice.
Explanation: Date of receipt of payment means – Date on which payment is ENTERED in his books of account OR Date on which payment is CREDITED to his bank account, (whichever is earlier)

Illustrations: Time of supply of services – (Considering prescribed time limit for issue of invoice – 30 days as per Invoice Rules)

S. No. Situation Date of Completion of Services Date of Invoice Date of receipt of Payment Time of supply of Services
1 Invoice issued within prescribed period of completion of service 16.04.2017 20.04.2017 28.04.2017 20.04.2017
2 Invoice issued within prescribed period of completion of service 30.09.2017 01.10.2017 24.09.2017 24.09.2017
3 Invoice issued after the prescribed period of completion of service 16.04.2017 16.08.2017 28.05.2017 15.05.2017
4 Invoice issued after the prescribed period of completion of service 10.06.2017 18.08.2017 30.04.2017 30.04.2017

As per Sub-Section 3 of Section 13 of CGST Act, the time of supply of services shall be on the following dates-

TIME OF SUPPLY

(UNDER REVERSE CHARGE MECHANISM )

Possible to determine the time of supply – under clause (a) or (b) Not Possible to determine the time of supply – under clause (a) or (b) In case of Associated Enterprises

(where supplier of service is located outside India)

Clause (a)- Date on which payment is made

OR

Clause (b) – Immediate date after end of 60 days from the date of issue of invoice

(Whichever earlier)

 

Date of entry in the books of accounts of the recipient of supply

Date of entry in the books of accounts of the recipient of supply

OR

Date of payment

(Whichever earlier)

Explanation: Date on which payment is made means:

Date on which payment is ENTERED in books of account of recipient

OR

Date on which payment is DEBITED to his bank account, (whichever is earlier)

Illustration 1: Time of supply of services – Reverse Charge

S. No Particulars Date of issue of Invoice Date of Actual Payment Date of entry in BOA of the Recipient Time of Supply
1 Case-I (Payment is made by recipient of services within 60 days of issue of invoice) 22.06.2017 10.05.2017 23.06.2017 10.05.2017
2 Case-II (Payment is not made by recipient of services within 60 days of issue of invoice) 23.06.2017 28.09.2017 24.06.2017 23.08.2017
3 Case-III (TOS is not determined under Case I or Case II) NA NA 25.06.2017 25.06.2017
4 Case-IV (Associate Enterprises located outside India) 23.08.2017 28.09.2017 24.08.2017 24.08.2017

Illustration 2: Time of supply of services – Reverse Charge

S. No Particulars Non- associated Enterprises Associated Enterprises located outside India
1 Date on which payment is entered in books of accounts of recipient 28.09.2017 28.09.2017
2 Date on which payment is debited to bank account of recipient 30.09.2017 30.09.2017
3 Date of issuance of invoice by supplier 23.08.2017 23.08.2017
4 Sixty days from the date of issuing invoice 21.10.2017 21.10.2017
5 Date of entry in the books of accounts of the recipient 24.08.2017 24.08.2017
Time of supply 28.09.2017 24.08.2017

Under Sub-Section 4 of Section 13 of CGST Act, In case of supply of vouchers, by whatever named called, by a supplier, the time of supply shall be:

TIME OF SUPPLY

the date of issue of voucher, if the supply is identifiable at that point

OR

the date of redemption of voucher, in all other cases

Under Sub-Section 5 of Section 13 of CGST Act (Residuary provision), In case it is not possible to determine the time of supply under the provisions of subsection (2), (3) or (4) the time of supply shall:

TIME OF SUPPLY

in a case where a periodical return has to be filed, the date on which such return is to be filed

OR

in any other case, the date on which the CGST/SGST is paid

Under Sub-Section 6 of Section 13 of CGST Act, Special charges imposed for delay in payment of consideration will enjoy the facility of time of supply being date of receipt of the charges imposed, that is, cash-basis of payment of GST (Charges such as Interest, late fees or penalty for delayed payment of any consideration).

TIME OF SUPPLY U/S 14 OF CGST ACT: Change in Rate of Tax in Respect of Supply of Goods or Services or Both-

Situation Before Change (A) After Change (B) Time of Supply Rate of Tax
In case the goods or services or both have been supplied before the change in rate of tax
Case-I Completion Invoice, Payment Which is earlier (Column-B) 18%
Case-II Completion, Invoice Payment Date of issue of Invoice 12%
Case-III Completion, Payment Invoice Date of receipt of payment 12%
In case the goods or services or both have been supplied after the change in rate of tax,
Case-I Invoice Completion, Payment Date of receipt of payment 18%
Case-II Invoice, Payment Completion Which is earlier (Column-A) 12%
Case-III Payment Completion, Invoice Date of issue of Invoice 18%

Proviso: date of receipt of payment shall be the date of credit in the bank account – if such credit in the bank account is after four working days from the date of change in the rate of tax. However, it credited in within four working days, then it shall be considered payment receipt before change in rate of tax

Explanation: “the date of receipt of payment” – date on which the payment is entered in the books of account of the supplier OR the date on which the payment is credited to his bank account, whichever is earlier.

Note: Suppose rate of tax before change in rate of tax was 12% and after change, it was 18%.

In case of any further query/clarification, please feel free to contact me at abs.bhardwaj@gmail.com. I shall be pleased to clarify any pertinent aspect.

(This article is based on my personal opinion and I will not be responsible for any loss due to follow the above.)

GST rate Schedule for Goods in 2017

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