Time of supply enables us to determine the rate of tax, value, and due dates for payment of taxes.
Under GST the liability to pay CGST / SGST, will arise at the time of supply as determined for goods and services. There are separate provisions for time of supply for goods and time of supply for services.
| General Rule | ||
| 1. | How to determine time of supply
|
The time of supply of goods shall be the earlier of the following dates –
(a) The date of issuing of invoice (or the last day by which invoice should have been issued as per section 28) OR (b) The date of receipt of payment -whichever is earlier |
| 2 | Date of receipt of payment | 1. The date on which he entered the payment in his books
OR 2. The date on which the payment is credited to his bank account -whichever is earlier |
| 3 | Other cases | If the supplier receives an amount up to Rs. 1000 in excess of the invoice amount, the time of supply for the extra amount shall be the date of issue of invoice (at the option of the supplier). |
| 4 | Example:
|
(a) Date of invoice 15th May 2017
(b) Date of receipt of payment 10th July 2017 (c) Date when supplier recorded receipt in books 11th July 2017 Time of supply will be 15th May 2017 |
| Time of supply under reverse charge | ||
| 1 | Meaning | Reverse charge means the liability to pay tax is by the recipient of goods/services instead of the supplier. |
| 2 | Time of supply
|
(a) the date of receipt of goods OR
(b) the date of payment OR (c) the date immediately after THIRTY days from the date of issue of invoice by the supplier (60 days for services) -whichever is earlier |
| 3 | Other Cases | If it is not possible to determine the time of supply under (a), (b) or (c), the time of supply shall be the date of entry in the books of account of the recipient. |
| 4 | the date of payment | (a) The date on which the recipient entered the payment in his books
OR (b) The date on which the payment is debited from his bank account -whichever is earlier |
| 5 | Example:
|
(a) Date of receipt of goods 15th May 2017
(b) Date of payment 15th July 2017 (c) Date of invoice 1st June 2017 (d) Date of entry in books of receiver 18th May 2017 Time of supply of goods 15th May 2017 If for some reason time of supply could not be determined supply under (a), (b) or (c) then it would be 18th May 2017 i.e., date of entry |
| Time of supply for vouchers | ||
| Time of supply
|
(a) The date of issue of voucher, if the supply can be identified at that point OR
(b) The date of redemption of voucher, in all other cases; |
|
| When time of supply cannot be determined | ||
| If it is not possible to determine the time of supply by the above provisions, then it will be-
(a) The date on which a periodical return has to be filed or (b) The date on which the CGST/SGST is paid, in any other case. |
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