timeofsupply-210705152838HJYHHHTTTTTT.pdf

GST TIME OF SUPPLY ANOTHER NOTES

1. UNDER GST
(POINT IN TIME WHEN THE LIABILITY TO PAY TAX ARISES)

2. TIME OF SUPPLY

Timeofsupply meansthatpointoftimewhengoods/servicesare
consideredtobesupplied.

Oncethesupplyhasbeenmade,asupplierisrequiredtodischargehis
GSTliability.

TimeofSupply helpstoidentifyduedateforpaymentoftaxesi.e.the
pointoftaxation.

UndertheCGSTAct,Section12,13and14dealswiththeprovisions
relatedtoTIMEOFSUPPLY.

3. TIME OF SUPPLY
Time of Supply of Goods
(Section 12 of the CGST Act,
2017)
Time of Supply of Services
(Section 13 of the CGST Act,
2017)
Change in rate of tax in respect of supply of goods or
services (Section 14 of the CGST Act, 2017)
PROVISIONS RELATED TO TIME OF SUPPLY

4. TIME OF SUPPLY OF GOODS
(SECTION 12 OF THE CGST ACT, 2017)
CLASSIFICATION OF SITUATIONS TO DETERMINE
TIME OF SUPPLY OF GOODS U/S 12
SUPPLY OF GOODS
UNDER FORWARD
CHARGE
u/s 12 (2
)
SUPPLY OF GOODS
UNDER REVERSE
CHARGE u/s 12 (3
)
SUPPLY OF
VOUCHERS THAT
CAN BE USED TO PAY
FOR GOODS u/s 12
(4)
Residual cases u/s
12(5)
an addition in
the value of
supply by way
of interest, late
fee or penalty
for delayed
payment of any
consideration
u/s 12 (6)

5. TIME OF SUPPLY OF GOODS UNDER FORWARD CHARGE
[Section 12(2) of the CGST Act, 2017]

Thetimeofsupplyofgoodsshallbe theearlierofthefollowingdates,
namely:—
a.
thedateofissueofinvoicebythesupplierorthelastdateonwhichhe
isrequired,undersection31oftheCGSTAct,toissuetheinvoicewith
respecttothesupply;or
b.
thedateonwhichthesupplierreceivesthepaymentwithrespecttothe
supply.
**“Thedateonwhichthesupplierreceivesthepayment”shallbethedateon
whichthepaymentisrecordedinhisbooksofaccountorthedateonwhichthe
paymentiscreditedtohisbankaccount,whicheverisearlier.

6. TIME OF SUPPLY OF GOODS UNDER FORWARD CHARGE
[SECTION 12(2) OF THE CGST ACT, 2017]
i.Thedateofissueofinvoicebythesupplier;
or
ii.Thelastdateonwhichheisrequired,u/s31ofthe
CGSTAct,toissuetheinvoicewithrespecttothe
supply. Whichever
is earlier
from ior ii
a
i.Thedateonwhichthepaymentisrecorded
inhisbooksofaccount
or
ii.Thedateonwhichthepaymentiscredited
tohisbankaccount, Whichever is
earlier from ior ii
b
Whicheverisearlierfrom
a
or
b
isthe“TimeofSupplyofGoods”underforward
charge.

7. TIME OF SUPPLY OF GOODS UNDER FORWARD CHARGE
[Section 12(2) of the CGST Act, 2017]

Someimportantpoints-

‘supply’shallbedeemedtohavebeenmadetotheextentitiscoveredby
theinvoiceor,asthecasemaybe,thepayment.
Example-
Altd.EntersintoagreementwithBLtd.Tosupply100Kgofrawmaterial.
However,ALtd.Suppliesonly80kgofrawmaterialandissuestheinvoicefor
thesame.Heretheprovisionrelatingtotimeofsupplyshallbeonly
applicabletosupplyof80Kgi.e.coveredbyinvoice.

8. TIME OF SUPPLY OF GOODS UNDER FORWARD CHARGE
[Section 12(2) of the CGST Act, 2017]

Someimportantpoints-

Wherethesupplieroftaxablegoodsreceivesanamountuptoone
thousandrupeesinexcessoftheamountindicatedinthetaxinvoice,
thetimeofsupplytotheextentofsuchexcessamountshall,atthe
optionofthesaidsupplier,bethedateofissueofinvoiceinrespect
ofsuchexcessamount.

9. TIME OF SUPPLY OF GOODS UNDER FORWARD CHARGE
[Section 12(2) of the CGST Act, 2017]

Someimportantpoints-

AsperNotificationNo.66/2017dated15Nov,2017, all
taxpayersareexemptedfrompayingGSTatthetimeofreceiptof
advancesinrelationtosupplyofgoods.Thus Timeofsupply in
caseofsupplyofgoodswillonlybedeterminedaccordingtopointa
ofsection12(2).
Example-
Altd.SellsthegoodstoBLtd.On10
th
June.Theinvoiceforthesameisissuedon
thesameday.Paymentforgoodsisreceivedon5
th
June.Timeofsupplyofgoods
is10
th
June.

10. TIME OF SUPPLY OF GOODS UNDER FORWARD CHARGE
[Section 12(2) of the CGST Act, 2017]

Someimportantpoints-

Timeofissueofinvoiceforgoodsu/s31oftheCGSTAct,2017
S.no Supply of Goods Time of issue of Invoice
1 Movement of goods involved in supply before or at the time of removal of goods.
2 No movement of goods involved in
supply
before or at the time of delivery of goods or
making available to the recipient.
3 In case of continuous supply of Goods-beforeoratthetimeeachsuchstatementis
issuedor,asthecasemaybe,eachsuch
paymentisreceived
4 Goods sent for approval i.before or at the time of supply or
ii.six months from the date of removal,
whichever is earlier.

11. TIME OF SUPPLY OF GOODS UNDER REVERSE CHARGE
[Section 12(3) of the CGST Act, 2017]

Thetimeofsupplyofgoodsshallbe theearlierofthefollowingdates,
namely:—
a.
Thedateofthereceiptofgoods;or
b.
thedateofpaymentasenteredinthebooksofaccountofthe
recipientorthedateonwhichthepaymentisdebitedinhisbank
account,whicheverisearlier;or
c.
thedateimmediatelyfollowingthirtydaysfromthedateofissue
ofinvoiceoranyotherdocument,bywhatevernamecalled,in
lieuthereofbythesupplier.

12. TIME OF SUPPLY OF GOODS UNDER REVERSECHARGE
[SECTION 12(3) OF THE CGST ACT, 2017]
The date of the receipt of goods
a
i.
Thedateofpaymentasenteredinthe
booksofaccountoftherecipient;
or
ii.Thedateonwhichthepaymentis
debitedinhisbankaccount.
Whichever is
earlier from ior ii
b
Whicheverisearlierfrom
a
or
b
or
c
isthe“TimeofSupplyofGoods”underReverse
charge
Thedateimmediatelyfollowingthirtydaysfromthe
dateofissueofinvoiceoranyotherdocument,bythe
supplier
c

13. TIME OF SUPPLY OF GOODS UNDER REVERSE CHARGE
[Section 12(3) of the CGST Act, 2017]

Someimportantpoints-

whereitisnotpossibletodeterminethetimeofsupplyunderclause(a)or
clause(b)orclause(c),thetimeofsupplyshallbethedateofentryinthe
booksofaccountoftherecipientofsupply.
Example-
Bltd.sellsgoodstoCltd.On4
th
June.Thegoodsaretaxableunderreverse
charge.Invoiceforthesameisissuedon4
th
June.CLtd.Receivesthegoodson
27
th
June.Cltd.Recordsthepaymentinthebooksofaccounton10
th
Juneand
thesameisdebitedfromthebankaccountofCltd.On2
nd
July.Timeof
Supplyofthegoodsis10
th
June.

14. TIME OF SUPPLY OF VOUCHERS
[Section 12(4) of the CGST Act, 2017]

Incaseofsupplyofvouchersbyasupplier,thetimeofsupplyshallbe—
a.
thedateofissueofvoucher,ifthesupplyisidentifiableatthatpoint;or
b.
thedateofredemptionofvoucher,inallothercases.

15. TIME OF SUPPLY OF VOUCHERS
[SECTION 12(4) OF THE CGST ACT, 2017]
In case of supply of vouchers by a Suppliers
Time of
Supply
If supply is identifiable
If supply is not identifiable or
in other cases
the date of issue of voucher
the date of redemption of
voucher

16. TIME OF SUPPLY OF GOODS IN RESIDUAL CASES
[Section 12(5) of the CGST Act, 2017]

Whereitisnotpossibletodeterminethetimeofsupplyundertheprovisions
ofsection12(2),12(3)and12(4),thetimeofsupplyshall-
a.
bethedateonwhichsuchreturnistobefiledifaperiodicalreturnhas
tobefiled;or
b.
inanyothercase,bethedateonwhichthetaxispaid.

17. TIME OF SUPPLY OF GOODS IN RESIDUAL CASES
[SECTION 12(5) OF THE CGST ACT, 2017]
TIME OF SUPPLY OF GOODS IN RESIDUAL CASES
If periodical return has to be
filed
If periodical return has not to
be filed or in any other cases
the date on which such
return is to be filed
the date on which the tax is
paid

18. TIME OF SUPPLY IN CASE OF AN ADDITION IN THE VALUE OF SUPPLY BY
WAY OF INTEREST, LATE FEE, OR PENALTY FOR DELAYED PAYMENT
[Section 12(6) of the CGST Act, 2017]

Thetimeofsupplytotheextentitrelatestoanadditioninthevalueofsupply
bywayofinterest,latefeeorpenaltyfordelayedpaymentofany
considerationshallbethedateonwhichthesupplierreceivessuchadditionin
value.