Indirect
Taxation
Goods
and Services Tax
Time of Supply
Time of Supply of Goods
[Sec. 12(2) of the CGST Act, 2017]
A.
If supply involves movement of goods
Time of supply of goods is earlier of the following
two dates:
i.
Date
of issue of invoice by the supplier, or
ii.
The
last date on which the supplier is legally bound to issue the invoice with
respect to the supply i.e., the time of removal of goods for supply to the recipient.
B.
If supply does not involve movement of goods
Time of supply of goods is earlier of the following
two dates:
i.
Date
of issue of invoice by the supplier, or
ii.
The
last date on which the supplier is legally bound to issue the invoice with
respect to the supply i.e., the time of delivery of goods or making available thereof to
the recipient.
C.
If supply is in the nature of continuous
supply of goods
Time of supply of goods is the earliest of the
following dates:
i.
Date
of issue of invoice by the supplier, or
ii.
Time
when each statement of accounts is issued by the supplier, or
iii.
Time
when each payment is received by the supplier, whichever is earlier.
D. If
goods are sent or taken on sale on approval or return basis
Time of supply of goods is the earliest of the
following dates:
i.
Date
of issue of invoice by the supplier, or
ii.
Date
of confirmation of the supply, or
iii.
6
months from the date of removal of the goods
Time of Supply of Services
[Sec. 13(2) of the CGST Act, 2017]
A.
If invoice
is issued within 30 days from the completion of supply of service (or at the
time when the supply ceases, in a case where the supply of services ceases
before the completion of the supply, the invoice being issued to the extent of
the supply made before such cessation)
Time of supply of service is the earliest of the following
dates:
i.
Date of issue of invoice by the supplier, or
ii.
Date on which the receipt of payment is entered in the
books of account of the supplier, or
iii.
Date
on which the receipt of payment is credited to the bank account of the
supplier.
B.
In
other cases
Time of supply of service is the earliest of the
following dates:
i.
Date
of completion of supply of service, or
ii.
Date on which the receipt of payment is entered in the
books of account of the supplier, or
iii.
Date
on which the receipt of payment is credited to the bank account of the
supplier.
Time of Supply of Goods and Services (In
case of Reverse Charge)
A. In case of supply of goods [Sec 12(3) of CGST Act, 2017]
Time
of supply of goods shall be the earliest of the following dates:
i.
Date of receipt of goods by the buyer, or
ii.
Date of payment as entered in the books of account of
the buyer, or
iii.
Date on which the payment is debited in the bank
account of the buyer, or
iv.
Date immediately following 30 days from the date of issue
of invoice by the supplier.
Where it is not possible to determine the time of
supply of goods in case of reverse charge as per the aforesaid rules, the time of
supply shall be the date of entry in the books of account of the recipient of
supply.
B. In case of supply of services [Sec 13(3) of CGST Act, 2017
Time of supply of services shall be the earliest of the following dates:
i.
Date of payment as entered in the books of
account of the recipient of supply, or
ii.
Date on which the payment is debited in
the bank account of the recipient of supply, or
iii.
Date immediately following 60 days from
the date of issue of invoice by the supplier.
Where it is not possible to determine the time of
supply of services in case of reverse charge as per the aforesaid rules, the time of
supply shall be the date of entry in the books of account of the recipient of
supply.
In
case of Associated Enterprises (Supplier of service located outside India), the
time of supply shall be earlier of the following dates:
a)
Date of entry in the books of account of
the recipient of supply, or
b)
Date of payment by the recipient of
supply, whichever is earlier.
Important note:
Advance payments received by the supplier of goods
will not be considered in determining the time of supply. However, the supplier
of services is required to pay GST at the time of receipt of advances.
Time of Supply of Goods in case of supply of vouchers by a
supplier
[Sec. 12(4) of the CGST Act, 2017]
The time of
supply shall be—
(a)
The
date of issue of voucher, if the supply is identifiable at that point; or
(b)
The
date of redemption of voucher, in all other cases.
Time of Supply of Goods where
it is not possible to determine the time of supply u/s 12(2), 12(3) or 12(4)
[Sec. 12(5) of the CGST Act, 2017]
The time of supply shall be –
(a)
In a case
where a periodical return has to be filed, the date on which such return is to be
filed; or
(b)
In any
other case, the date on which the tax is paid.
Time of Supply of Goods in case
of enhancement in value of supply by way of interest and/or penalty for delayed
payment of any consideration
[Sec. 12(6) of the CGST Act, 2017]
The time of supply shall be the date on which the supplier receives
such addition in value.
Time of Supply of Services in case of supply of vouchers by a
supplier
[Sec. 13(4) of the CGST Act, 2017]
The time of supply shall be—
(a)
The
date of issue of voucher, if the supply is identifiable at that point; or
(b)
The
date of redemption of voucher, in all other cases.
Time of Supply of Services where it is not possible to determine the time of
supply u/s 13(2), 13(3) or 13(4)
[Sec. 13(5) of the CGST Act, 2017]
The time of supply shall be –
(a)
In a case
where a periodical return has to be filed, the date on which such return is to be
filed; or
(b)
In any
other case, the date on which the tax is paid.
Time of Supply of Services in case of enhancement in value of supply by way of
interest and/or penalty for delayed payment of any consideration
[Sec. 13(6) of the CGST Act, 2017]
The time of supply shall be the date on which the
supplier receives such addition in value.
Time of Supply where there is a change
in rate of tax in respect of supply of goods or services. [Sec. 14 of the CGST
Act, 2017]
The time of supply, where there is a change in the rate of
tax in respect of goods or services or both, shall be determined in the following manner:
1. In
case the goods or services or both have been supplied before the change in rate
of tax,–
a.
Where the invoice for the same has been issued and the
payment is also received after the change in rate of tax, the time of supply
shall be the date of receipt of payment or the date of issue of invoice,
whichever is earlier; or
b.
Where the invoice has been issued prior to the change
in rate of tax but payment is received after the change in rate of tax, the
time of supply shall be the date of issue of invoice; or
c.
Where the payment has been received before the change
in rate of tax, but the invoice for the same is issued after the change in rate
of tax, the time of supply shall be the date of receipt of payment;
2. In
case the goods or services or both have been supplied after the change in rate
of tax,–
a.
Where the payment is received after the change in rate
of tax but the invoice has been issued prior to the change in rate of tax, the
time of supply shall be the date of receipt of payment; or
b.
Where the invoice has been issued and payment is
received before the change in rate of tax, the time of supply shall be the date
of receipt of payment or date of issue of invoice, whichever is earlier; or
c.
Where the invoice has been issued after the change in
rate of tax but the payment is received before the change in rate of tax, the
time of supply shall be the date of issue of invoice:
Provided that the 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.
Explanation: For the purposes of
this section, “the date of receipt of payment” shall be the 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.
Time of supply rule where there is a
change in rate of tax
|
|
Dt. of supply |
Dt. of invoice |
Dt. of receipt |
Time of supply |
|
1 |
Before |
After |
After |
DOI or DOR, whichever is earlier |
|
2 |
Before |
Before |
After |
DOI |
|
3 |
Before |
After |
Before |
DOR |
|
4 |
After |
Before |
After |
DOR |
|
5 |
After |
Before |
Before |
DOI or DOR, whichever is earlier |
|
6 |
After |
After |
Before |
DOI |
DOI = Date of issue
of invoice
DOR = Date of receipt
of payment
“Before” and “after”
implies “before the change in rate of tax” and “after the change in rate of
tax” respectively.
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