In the current article we will discuss about time of supply of goods under GST, this topic is very important as time of supply of goods will decide the liability to be settled in which month and submission of GST Forms.
As per section 12 of CGST Act 2017 the liability to pay tax on goods shall arise at the time of supply as determined in accordance with the provisions of this section
According to 12(2) of CGST Act the time of supply of goods shall be the earlier of the following dates namely:-
For better understanding of the above provision we should understand section 31(1) to know the last date on which supplier is required to issue the invoice. As per sec 31(1) a registered person supplying taxable goods shall “Before or at the time of”
Any registered person who did not opt for the composition levy under section 10 of the CGST Act , shall pay the central tax on the outward supply of goods at the time of supply as specified in clause (a) of 12(2) of the said act.
Taking together sec 12 and section 31(1) and with the above notification is can be said that time of supply of goods would be earlier of the below:-
As per 12(3) of the CGST Act 2017 in case of supplies in respect of which tax is paid or is liable to be paid on reverse charge basis then time of supply would be the earliest of the following date:-
Provided that when it is not possible to determine the time of supply under above clause then the time of supply shall be the date of entry in the books of accounts of the recipient of supply.
As per 12(4) of CGST Act ,in case of supply of vouchers by the supplier the time of supply shall be the:-
As per 12(5) of CGST Act, where it is not possible to determine the time of supply under the provision of sub-section 2,3 or 4 the time of supply shall be :-
The time of supply to the extent it relates to an addition in value of supply by way of interest, late fees or penalty for delayed payment of any consideration shall be the “Date on which the supplier receives such addition in value”.
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