Understanding Time of Supply Rules under Revised GST

0
1448
Time of Supply

Updated on 10-04-2017

GST is levied on supply of goods and service. The time of supply fixes the point when the liability to charge GST arises. It also indicates when a supply is deemed to have been made. The model law provides separate time of supply for goods and services. Sec. 12 of the model law deals with the time of supply of goods and sec. 13 deals with the time of supply of service.

The time of supply shall be the earlier of the following dates:

  1. the date of issue of invoice by the supplier; or
  2. the last date on which he is required, u/s 31, to issue the invoice with respect to the supply; or
  3. the date on which the supplier receives the payment with respect to the supply

Receipt of Petty Advances: Where the supplier of taxable goods or service receives an amount up to ₹ 1,000/- in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess shall, at the option of the said supplier, be the date of issue of invoice

The date on which the supplier receives the payment shall be earlier of the following dates:

  1. The date on which the payment is entered in his books of accounts; or
  2. The date on which the payment is credited to his bank account

Time of supply of goods in case of Reverse Charge

In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earliest of the following dates:

  1. the date of the receipt of goods; or
  2. the date on which the payment is made; or
  3. the date immediately following 30 days from the date of issue of invoice by the supplier
Also Read  Advance ruling to be void in certain circumstances

Where it is not possible to determine the time of supply as given above, the time of supply shall be the date of entry in the books of account of the recipient of supply.

The date on which the payment is made shall be earlier of the following dates:

  1. The date on which the payment is entered in the books of accounts of the recipient; or
  2. The date on which the payment is debited in his bank account

Time of supply of service in case of Reverse Charge

In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earliest of the following dates:

  1. the date on which the payment is made; or
  2. the 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 as given above, 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, 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 of supply or the date of payment, whichever is earlier.

The date on which the payment is entered in the books of accounts of the recipient or the date on which the payment is debited in his bank account, whichever is earlier shall be considered as the date on which the payment is made.

Supply of Vouchers

In case of supply of vouchers, by whatever name called, by a supplier, the time of supply shall be:

Also Read  Permanent Account Number (PAN)
CaseTime of Supply
If the supply is identifiable at that pointThe date of issue of voucher
In all other casesThe date of redemption of voucher

In case it is not possible to determine the time of supply as per aforesaid provisions, the time of supply shall be:

  1. in a case where a periodical return has to be filed, be the date on which such return is to be filed, or
  2. in any other case, be the date on which the CGST/SGST is paid.

Frequently Asked Questions

[bwla_faq faq_topics=”faq_gst_time_supply” orderby=”date” order=”ASC” sbox=”1″ paginate=”1″ pag_limit=”8″ list=”0″ /]

Share your thoughts by way of comments.

You must be logged in to post comments