Time and Valuation of Supply under Revised GST Law
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 28-12-2016
This chapter will focus on time of supply of goods and services vis a vis valuation of supply which includes goods and services. Both are very significant part of any business vis a vis taxation . Time is important for point of tax that when the liability to pay tax will arise on goods and service . Similarly Valuation on what value the tax shall be levied by Government. For valuing any goods what to include and not to include is subject matter of big discussion. This has all been incorporated in Section 12,13,14 and 15 of the MGL. Main basis of valuation is transaction value. Now under revised GST law “Determination of value of supply of Goods and Services Rule,2016.” has been withdrawn . Let us address the issue one by one. Time of supply of goods and services has been defined in Section -2.
Section 2[104] “Time of Supply of Goods” shall have the
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In case of supply of vouchers
* Date of supply of voucher, if it can be identify
* Date of redemption of voucher in all other cases
In case it is not possible to establish the time of supply as discussed above then
* Date of periodical return has to be filed
* Date on which SGST / CGST is paid
Time of supply of services [ Sec. 13 ]
* The liability to pay CGST and SGST shall arise only at the time of supply of
services. Time of supply of services shall be :
* Date of issue of invoice or the last date of issue of invoice u/s 28
* At the time of receipt of payment
If the payment received by the supplier is up to ₹ 1000 in excess of amount written in invoice, time of supply for such excess shall be at the option of supplier, may be the date of issue of invoice
In case where tax is payable on supply of services under reverse charge, earliest of the following;
* Date on which payment is made
* Date immediately after 60 days from the date of invoice
Where
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ceived after the change of rate of tax , time of supply shall be earliest of the invoice or payment
* Where the invoice is raised before the change of rate of tax and payment is received after the change of rate of tax, date of invoice shall be time of supply.
* Where payment is received before change of rate of tax and invoice is issued after the change of rate of tax, time of supply shall be date of receipt of payment
In the case of goods or services have been supplied after the change of effective rate of tax
* Where the payment is received after the change of rate of tax and invoice is raised before change of rate of tax, time of supply of services shall be date of date of receipt of payment.
* Where the invoice is raised after the change of rate of tax and payment is received before the change of rate of tax , time of supply shall be date of date of invoice.
* Where the invoice is raised and payment is received before the change of rate of tax , time of supply shall be
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r delayed payment of consideration for any supply.
Following shall not be included;
i] Transaction value shall not include any discount allowed before or at the time of
supply provided such discount is recorded in the invoice.
ii] discounts is given after the supply but such discount is as per the agreement
already entered before the supply and is linked to relevant invoices. And Input tax
credit is reversed by the recipient of supply on such discount.
Where the value can not be determined as per sub section 1, the same shall be determined as may be prescribed.
FAQ on Valuation of supply of goods and services
* What is transaction value?
Transaction value refers to price actually paid or payable for supply of goods or services where the supplier and recipient are not related.
Are there separate provision for valuation in SGST,CGST and IGST for goods and service ?
No. Section 15 is common for all three taxes and also common for goods and services.
Weather post supp
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