Goods and Services Tax – GST – By: – CA Akash Phophalia – Dated:- 27-12-2016 – The provisions related to time of supply of goods are contained in Section 12 of Model GST Act as under :- 12. Time of supply of goods (1) The liability to pay CGST / SGST on the goods shall arise at the time of supply as determined in terms of the provisions of this section. (2) The time of supply of goods shall be the earlier of the following dates, namely,- (a) the date of issue of invoice by the supplier or the last date on which he is required, under section 28, to issue the invoice with respect to the supply; or (b) the date on which the supplier receives the payment with respect to the supply: PROVIDED that where the supplier of taxable goods receives an amount up to one thousand rupees 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. Explanation 1.- For the purposes of cla
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use (b), the date on which the payment is made shall be 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. (4) In case of supply of vouchers, by whatever name called, by a supplier, the time of supply shall be- (a) the date of issue of voucher, if the supply is identifiable at that point; or (b) the date of redemption of voucher, in all other cases; (5) In case it is not possible to determine the time of supply under the provisions of sub-section (2), (3) or (4) the time of supply shall (a) in a case where a periodical return has to be filed, be the date on which such return is to be filed, or (b) in any other case, be the date on which the CGST/SGST is paid. Analysis of the Provisions The general provision related to determination of time of supply of goods is earlier of the following :- (a) The date of issue of invoice in case when invoice is issued and in case where
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covered with the said invoice and payment. For instance, a registered taxable person makes a supply of goods and raises invoice timely of Rs one lacs on say 1st April 2016 and the payment of ₹ 100500/- is received on say 10th May 2016, then the time of supply for Rs one lacs shall be the 1st April 2016. The provision stated above further provides that in case supplier receives advance upto an amount of 1000 rupees then time of supply in respect to the said advance can be taken as, at the option of the assessee, date of issuance of invoice. In our earlier example for the surplus amount of ₹ 500/- the time of supply can be taken as the date of issue of invoice in respect to such amount or the date of payment of the said amount, but at the option of the assessee. Time of Supply – Reverse Charge In case where tax is liable to paid on reverse charge basis, then time of supply will be earlier of the following :- (a) The date of receipt of goods (b) The date on which payment is ma
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