GST Council is all set to implement GST from July 1, 2017. Taxable event under GST is supply of goods or services as case may be. Hence, it becomes mandatory for us to obtain an understanding of TIME OF SUPPLY i.e. when the act will regard that supply has taken place and will require the payment of tax. In this article, I would like to discuss the point of time when it will be regarded that supply has taken place.
Supply in respect of Goods:
Supply with respect to goods are being discussed in Section 12 of CGST Act which is as follows:
Time of Supply of goods will be earliest of following:
a) Date on which Invoice is issued.
b) Date on which he is required to issue Invoice as per Section 31(1) which is as follows
i) With respect to goods that require movement, invoice must be issued before or at the time of removal of goods by supplier or any other person.
ii) In case no movement of goods is involved, invoice must be issued before or at the time of delivery of goods.
c) Date on which supplier receives the payment i.e. earlier of date on which payment is credited in his bank account or credited in his books of accounts.
In respect of supplies on which tax is payable under reverse charge, Time of supply will be earliest of following :
a) Date on which goods are being received
b) Date on which payment is made in books of accounts of recipient
c) Date on which the same is reflected in Bank Statement.
d) 30 days from the date of issue of Invoice by Supplier.
In case of Supply of Vouchers, Point of supply shall be as following:
a) Where Voucher relates to any particular supply, it shall be date of issue of voucher
b) Date of redemption in other cases.
Supply in respect of Services:
Supply with respect to Services are being discussed in Section 13 of CGST Act which is as follows:
Time of Supply of Services will be earliest of following:
a) Date of issue of Invoice, if invoice is issued within 30 days from date of rendering of services.
b) Date of provision of services if invoice has not been issued within 30 days.
In respect of supplies on which tax is payable under reverse charge, Time of supply will be earliest of following :
a) Date on which payment is made in books of accounts of recipient
b) Date on which the same is reflected in Bank Statement.
c) 60 days from the date of issue of Invoice by Supplier.
In case of Supply of Vouchers, Point of supply shall be as following:
c) Where Voucher relates to any particular supply, it shall be date of issue of voucher
d) Date of redemption in other cases.
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