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)

Author Bio

Qualification: Student - CA/CS/CMA
Company: N/A
Location: Gurugram, Haryana, IN
Member Since: 13 Jan 2019 | Total Posts: 7
Experienced Senior Account & Tax Executive with a demonstrated history of working in the Financial Services Industry. Skilled in Internal Audit, Direct Tax, Microsoft Word, Excel, Powerpoint, HostBooks, Tally ERP, Spider, Spectrum, Zen, etc. View Full Profile

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