Time of supply under GST

Time of supply under Goods and Services Tax

1. Mr. M. Manikandan Assistant Professor, Department of Commerce, ANJA College, Sivakasi .

2. TIME OF SUPPLY

3. Supply under GST Supply includes sale, transfer, exchange, barter, license, rental, lease and disposal. If a person undertakes either of these transactions during the course or furtherance of business for consideration, it will be covered under the meaning of Supply under GST.

4. Supplier under GST Under GST, a supplier in someone who supplies any goods or services. A supplier also includes an agent acting on behalf of a supplier for supply of goods or services.

5. Levy of Tax on Supply of Goods Levy of Tax on Supply is dependent upon three key factors. Time of Supply Value of Supply Place of Supply

6. Time of Supply Time of supply means the time of when goods/services are considered to as supplied. In time under GST determines the rate of tax, value as well as due dates for payment of taxes . When the seller knows the 'time', it helps him identify due date for payment of taxes.

7. Time of Supply of goods/services The date of issue of invoice by the Supplier; or The last date on which the taxpayer should issue the invoice with respect to the supply; or The date on which the Supplier receives the payment with respect to the supply . Time of supply means the point in time when goods/services are considered supplied'. When the seller knows the 'time', it helps him identify due date for payment of taxes. CGST/SGST or IGST must be paid at the time of supply.

8. Provisions regarding time of supply of goods Provisions regarding time of supply revolve around four categories: Forward Charge Mechanism Reverse Charge Mechanism Vouchers All Other Instances

9. Forward Charge Mechanism Date of Issue of Invoice Due Date for Issue of Invoice Date of Receipt of Payment Reverse Charge Mechanism Date of receipt of goods The date immediately after  THIRTY  days from the date of issue of invoice by the supplier (60 days for services) Date of payment

10. Vouchers In case a supplier gets vouchers in lieu of supply of goods, the time of supply is determined as under: The first case is the one where the supply is identifiable at the time of the issue of the voucher. The time of supply in such a scenario is taken as the date of issue of the voucher. The second case relates to the one where supply is not identifiable at the time of issue of the voucher. In this scenario, date of redemption of the voucher would be taken as the time of supply .

11. All other instances In case of instances other than the ones mentioned above, the time of supply is taken as: Due-date for filing periodic returns or In other cases, the date of payment of GST

12. Example: ( a) Date of invoice 15th May 2019 (b) Date of receipt of payment 10th July 2019 (c) Date when supplier recorded receipt in books 11th July 2019 Time of supply will be 15th May 2019

13. Example: (a) Date of receipt of goods 15th May 2019 (b) Date of payment 15th July 2019 (c ) Date of invoice 1st June 2019 (d ) Date of entry in books of receiver 18th May 2019 Time of supply of goods 15th May 2019 If for some reason time of supply could not be determined supply under (a), (b) or (c) then it would be 18th May 2019 i.e., date of entry

14. Provisions regarding time of supply of services Provisions regarding time of supply revolve around four categories: Forward Charge Mechanism Reverse Charge Mechanism Vouchers All Other Instances

15. Time of supply of services under Forward Charge Mechanism Date of issue of Invoice by the Supplier: if the Supplier issues the invoice within 30 days of providing service or the date of receipt of payment, whichever is earlier; or The date of provision of service, if the Supplier fails to provide the invoice within 30 days of providing service or the date of receipt of payment, whichever is earlier; or The date on which the recipient shows the receipt of services in his books of account .

16. Time of Supply of services under Reverse Charge Mechanism The date on which payment is made The date immediately following 60 days from the date of issue of an invoice from a supplier Time of Supply of services under vouchers The date of issue of voucher, if the supply can be identified at that point The date of redemption of voucher

17. Time of Supply of services under All Other Instances If it is not possible to determine the time of supply by the above provisions, then it will be The date on which a periodical return has to be filed The date on which the CGST/SGST is paid, in any other case.

18. Time of supply of services in case of supply by associated enterprises located outside India The date of entry in the books of account of the receiver The date of payment - whichever is earlier

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