Time of supply of goods and services

This PPT explains all about the latest amendments in the GST regime. Under, valuation of supply, this topic covers the time of supply which is considered as as second aspect after place of supply.

1. Time of supply under GST Section 12, 13 & 14 By: Anshul Kanojia Roll no. – 16BC088 Tute group – E24 Section - E

2. Time of supply of goods and services Anshul Kanojia Time of supply means a point in time when a supply shall be deemed to have been provided. This determines the time when the liability to pay would arise. In other words, the time of supply fixes the point in time when the liability to pay tax arises. The supply under GST includes both goods and services. The CGST Act provides separate provisions for the supply of goods (under Section 12) and supply of services (under Section 13).

3. Time of supply of goods and services - Section 31 Anshul Kanojia

4. Time of supply of goods and services - Section 31 Anshul Kanojia Tax Invoice Section 31(1) Invoice Shall be issued before or at the time of Removal of Goods for Supply to the recipient Before or at the time of delivery of goods or making available

5. Time of supply of goods and services - Section 31 Anshul Kanojia Tax Invoice Section 31(4) Where successive statement of accounts or payment are involved, Invoice shall be issued before or at the time of issuance of each such statement or at the time of receipt of each such payment. In case of Goods sent on approval or sale or returned or similar terms. Invoice should be issued before or at the time of supply or 6 months from the date of removal, whichever is earlier. Tax Invoice Section 31(7)

6. Time of supply of goods and services - Section 31 Anshul Kanojia Tax Invoice Section 31(2) Invoice needs to be issued either before the provision of service or within 30 days from date of supply of service. The limit of 30 days is 45 days in case of insurance companies/banking and other financial institues. In case of cessation of supply. Invoice should be issued at the time when supply ceases before its completion Tax Invoice Section 31(6)

7. Time of supply of goods and services - Section 31 Anshul Kanojia Tax Invoice Section 31(5) Invoice should be issued either: On/before due date of payment Before/at the time when suppliers receives the payment On/before the completion of the milestone event when payment is linked to completion of an event. In case of Goods sent on approval or sale or returned or similar terms.

8. Time of supply of goods and services – Section 12 Anshul Kanojia Section 12

9. Time of supply of goods and services – Section 12 Anshul Kanojia Where not determinable as per above, TOS shall be date of entry in books of account of recipient

10. Time of supply of goods and services Anshul Kanojia (2) From 13 th October , 2017 to 14 th November, 2017 1 st July, 2017 to 12 th October 2017 TOS will be, earliest of Date of invoice Date of payment Aggregate turnover of supplier is <=1.5 Cr >1.5Cr TOS will be date of invoice TOS will be, earliest of Date of invoice Date of payment When advanced is received in respect of supply of goods under forward charge (3) 15 th November onwards TOS will be date of invoice or last date on which the supplier is required to issue invoice

11. Time of supply of goods and services – Section 12 Anshul Kanojia Kamla has supplied goods to Mr. X on 24-12-2017. The invoice had already been raised on 22-12-2017. Mr. X paid the due amount on 29-12-2017 and the same was entered in the books of accounts of kamala on 30-12-2017 and credited to his bank account on 2-1-2018. Date of issue of actual invoice 22-12-2017 Date of payment entered in the book 30-12-2017 Date on which amount credited in the bank account 2-1-2017 Time of supply 22-12-2017 But if invoice was raised on 27-12-2017 Date of issue of actual invoice 24-12-2017 Date of payment entered in the book 30-12-2017 Date on which amount credited in the bank account 2-1-2017 Time of supply 24-12-2017

12. Time of supply of goods and services – Section 12 Anshul Kanojia Date of receipt of goods by Mr. Raj 16-11-2017 Date of payment is made and entered in the book by him 19-12-2017 Date on which amount is debited in the bank account 20-12-2017 Date of issue of invoice by supplier X 14-11-2017 Reverse charge Date of receipt of goods by Mr. Raj 16-11-2017 Date of payment is made and entered in the book by him 19-12-2017 Date on which amount is debited in the bank account 20-12-2017 Date of issue of invoice by supplier X (+31 days) 15-12-2017 Time of supply 16-11-2017

13. Time of supply of goods and services – Section 12 Anshul Kanojia Add. to value o supply (6) Date on which the supplier receives such addition in value

14. Time of supply of goods and services – Section 12 Anshul Kanojia On account of increasing competition, the dominos has launched a scheme under which each purchase of large pizza, during the diwali season, one can buy a voucher of Rs. 50 which is redeemable till 24th November for small pizza. Now the supply against the voucher is known on the date of sale, the time o supply will be date of issue of voucher vouchers

15. Time of supply of goods and services – Section 12 Anshul Kanojia Smart ltd. Supplied goods to Dinanath for Rs. 150000 on 15-10-2017. The payment can be made upto28-10-2017. If the buyer fails to make payment, then interest shall be charged @ 100/day to be calculated from 16-10-2017. Dinanath paid the amount on 18-11-2017. As regards interest, the supplier agreed to waive a portion of interest against payment of Rs. 1800 immediately and payment for interest was made the same day. so. As per sec 12(6), the time of supply in relation to the value of supply by way of interest shall be 18-11-2017. Addition to the value of supply

16. Time of supply of goods and services – Section 13 Anshul Kanojia Section 13

17. Time of supply of goods and services - Section 13 Anshul Kanojia Reverse charge (3) • Earliest of the following : • Date on which Payment is made • Date immediately following 60 days of invoice “Associated firm” Date of entry in books Date of payment

18. Time of supply of goods and services - Section 13 Anshul Kanojia Example: On 12 th January 2018, B.R. Ambedkar College, DU has booked ‘shah auditorium for their annual day function. The function to be held on the foundation day of the college i.e., on 8 th February. The college has paid booking amount of Rs. 20,000 on the date of booking. The function was successfully held. The invoice was raised by the manager of auditorium on 10 th February for Rs. 50,000, indicating balance of Rs. 30,000payable. This balance amount was paid by college on 16 th February, 2018. Now the time of supply of services to the extent of Rs. 20,000 is 12 th January,2018 as the date of payment is earlier than the date of service. But, the time of supply of services to the extent of the balance Rs. 30,000 is 10 th February which comes before the date of payment (i.e., 16 th feb , 2018).( since the invoice is issued within the prescribed time limit date of provision of service has not been taken)

19. Time of supply of goods and services - Section 13 Anshul Kanojia Example: Bharat , a registered person, has received the supply of services from non- taxable territory. Accordingly, the tax is liable to be paid by the recipient on reverse charge basis. Bharat provides the following information in respect of such service received by him. Date of payment as entered in the books by service receiver (Bharat) 2-12-2017 Date on which above payment is debited in bank account of Bharat 5-12-2017 Date of issue of invoice by supplier of service 24-11-2017 Date of payment as entered in the books by service receiver (Bharat) 2-12-2017 Date on which above payment is debited in bank account of Bharat 5-12-2017 Date of issue of invoice by supplier of service (+61 days) 24-1-2018 Point of supply 2-12-2017

20. Time of supply of goods and services – Section 13 Anshul Kanojia Add. to value o supply (6) Date on which the supplier receives such addition in value

21. Time of supply of goods and services - Section 13 Anshul Kanojia Example: On 1 st January, 2018 ABC dry cleaners, vivek vihar , have issued voucher of Rs. 4000 to XYZ ltd. The company XYZ ltd. Distributed these vouchers against its employees. The voucher may be redeemed by its employees latest by 28 th February by taking dry cleaning services from ABC dry cleaners. In this example, the voucher are identifiable with a particular supply of dry cleaning services. Therefore, The date of issue of voucher (1 st Jan, 2018) shall be time of supply Mr. Harish could not pay his mobile bill in time. The service provider bharati Airtel has charged Rs 150 as late fee on account of non payment of the bill on due date for the month January 2018. The time of supply of such late fees will be the date on which bharati airtel receives the amount of late fee from their customer

22. Time of supply of goods and services – Section 14 Anshul Kanojia Section 14

23. Time of supply of goods and services – Section 14 Anshul Kanojia Taxable supply has been provided Issue of invoice (DOI) Receipt of payment (DOR) Time of supply Rate Before change in tax rate after after Whichever is earlier new before after DOI old after before DOR old After change in tax rate before after DOR new before before Whichever is earlier old after before DOI new Section 14 – change in rate of tax

24. Time of supply of goods and services Anshul Kanojia Taxable supply has been provided Issue of invoice (DOI) Receipt of payment (DOR) Time of supply Rate Before change in tax rate w.e.f 15-11-2017 (18% to 12%) 1-09-2017 18-11-2017 DOI Old rate Section 14 – change in rate of tax Example-

25. Time of supply of goods and services Anshul Kanojia Thank you