The Supply is key ingredient in GST law therefore it much relevant to know the ‘Time of Supply’ so that incident of tax liability can be determined on a particular time. The Chapter-IV of the CGST Act, 2017 (section 12 to 15) deal with time and valuation of supply:

  • Section 12.Time of supply of goods.
  • Section 13.Time of Supply of Services.
  • Section 14.Change in rate of tax in respect of supply of goods or services.

Following is the summarized position of ‘Time of Supply’ for Goods and Services under GST Law.

S. No. Nature of Supply In respect of goods In respect of services

1.

 A

Normal Provision

 A  A
 Earliest of the following:

(a)  Date of issue of invoice by the supplier;

(b)  If invoice is not issued the last date on which supplier is required to issue the invoice [Sec. 31(1)];

(c)  The date on which supplier receives the payment with respect to supply

 Earliest of following:

(a)  Date of issue of invoice by the supplier;

(b)  If invoice is not issued, the last date on which supplier is required to issue the invoice (i.e. 30 days);

(c)  The date on which supplier receives the payment with respect to the supply.

2.  Supply of vouchers when the final supply is identifiable (single purpose vouchers)  Date of issue of voucher  Date of issue of voucher
3.  Multi-purpose vouchers i.e. the precise supply is not identifiable  Date of redemption of voucher  Date of redemption of voucher

4.

 A
 Reverse charge taxation

 A A
 Earlier of the following dates:

a) receipt of goods;

b) payment;

c) date immediately following 30 days of invoice date

 If cannot be done as above: the date of entry in accounts

 Earlier of the following dates:

a) payment;

b) date immediately following 60 days of invoice date

If cannot be done as above: the date of entry in accounts.

5.  In case of ‘associated enterprises’ located outside India  Not applicable  Earlier of the following:

a)  date of entry in books of accounts; or

b) date of payment;

6.  Levy of interest, late fees or penalty for delay in payment of consideration  Date on which the supplier receives such addition to value  Date on which the supplier receives such addition to value

The Time of Supply in Case of Change in Rate of Tax

Section 14 of CGST Act 2017 deal with ‘Time of Supply’ in case change in Rate of Tax in respect of Supply of Goods or Services. The summarized provision of this section is as under:

Scenario Issue of Invoice Receipt of payment Time of Supply
 CASE-I: Where the Goods or Services or both have been supplied Before the change in Rate of Tax  After the change in Rate of Tax  After the change in Rate of Tax  Date of payment or date of invoice, whichever is earlier
 Before change in Rate of Tax  After change in Rate of Tax  Date of invoice
 After change in Rate of Tax  Before change in Rate of Tax  Date of payment
 CASE-II: Where the Goods or Services or both have been supplied After the change in rate of tax  Before change in Rate of Tax  After change in Rate of Tax  Date of payment
 Before change in Rate of Tax  Before change in Rate of Tax  Date of payment or date of  invoice, whichever is earlier
 After change in Rate of Tax  Before change in Rate of Tax  Date of Invoice

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