Time of Supply of Goods / Services under GST
In GST law, liability to pay CGST/SGST on the Goods / Services shall arise at the time of Supply of Goods / Services. In this Article, we analysis the various provision of GST to understand that how to determine time of supply for Goods / Services.
1. General Provision
| Time of Supply for Goods | Time of Supply for Services |
| Definition: Time of Supply of Goods shall have the meaning as assigned to it in Section 12 | Definition: Time of Supply of Services shall have the meaning as assigned to it in Section 13 |
| Time of Supply of Goods shall be earlier of the following dates | Time of Supply of Services shall be earlier of the following dates |
| Date of Issue of Invoice by supplier | Date of Issue of Invoice by supplier if invoice issued within period specified under Sub Section (2) under section 31. |
| Last date on which he is required to issue the invoice under Sub section (1) of Section 31. | The date of provision of services if invoice not issued within period specified under Sub section (2) under Section 31. |
| Date of receipt of payment | Date of receipt of payment |
| In case where above clause does not apply then the date on which recipient shows the receipt of services in his book of account | |
| Where amount up to INR 1,000/- is received more than amount indicated in an invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice | |
Provisions for raising Invoice as per Sub section (1) and Sub Section (2) of Section 31 is as below: –
| Supply of Goods | Supply of Services |
| Removal of goods for supply to the recipient where supply involves movement of goods or Delivery of goods or making available thereof to the recipient in any other case | Before or after the provision of service but within a period prescribed. |
Also See, “Concept of Supply under GST“
2. Supply under reverse charge mechanism (“RCM:)
| Time of Supply for Goods | Time of Supply for Services |
| Time of Supply of Goods shall be earlier of the following dates | Time of Supply of Services shall be earlier of the following dates |
| Date of receipt of goods or | Nil |
| Date on which payment is made in books of account or debited in bank statement whichever is earlier | Date on which payment is made in books of account or debited in bank statement whichever is earlier |
| Date immediately following 30 days from the date of issue of invoices by the supplier | Date immediately following 60 days from the date of issue of invoices by the supplier |
| Nil | In case of associated enterprise: Where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient or the date of payment whichever is earlier |
| Where it is not possible to determine the time of supply under the above clauses, the time of supply shall be the date of entry in the books of account of the recipient of supply | |
Also See, “Basis Concept of Reverse Charge Mechanism in GST“
3. Supply of Vouchers: –
| In case of supply of vouchers, by whatever name called, by a supplier, the time of supply shall be- |
| Date on which periodical return to be filed in a case where such return has to be filed or |
| Date of redemption of voucher, in all other cases. |
4. Residuary Provision: –
| Where it is not possible to determine time of supply under the above provision then time of supply of goods and services shall be |
| In a case where a periodical return has to be filed – Date on which such return is to be filed |
| In any other case – Date on which the CGST/SGST or IGST is paid |
5. Supply in case of Interest, late fee or penalty: –
| The time of supply in respect to an addition in value of supply due to by way of interest, late fee or penalty for delayed payment shall be the date on which the supplier receives such addition in value. |
For any query you can write at taxhouseindia@gmail.com Before making any decisions do consult with your professional or tax advisor.
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