Time of Supply of Goods / Services under GST

Time of Supply of Goods / Services under GST

AS per Model GST law liability to pay CGST/SGST on the Goods / Services depend upon at the time of Supply of Goods / Services. In this blog, we understand that how to determine time of supply for Goods / Services.

A. 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 ·      Date of Issue of Invoice
·      Last date on which he is required to           issue the invoice under section 28 ·      Last date on which he is required to           issue the invoice under section 28
·      Date of receipt of payment ·      Date of receipt of payment
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 Section 28 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. [i.e. 45 days in case of banking and financial institution from the date of supply of service / 30 days in all other cases.

 

B. 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 or ·     Date on which payment is made or
·      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

 


C. 
Supply of Vouchers

In case of supply of vouchers, by whatever name called, by a supplier, the time of supply shall be :-
·      Date of issue of voucher, if the supply is identifiable at that point or
·      Date of redemption of voucher, in all other cases.

 

D. 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

 

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