Time of supply under CGST Act, 2017
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 29-5-2017
This chapter will focus on time of supply of goods and services which includes goods and services. Time of supply is very significant part of any business vis a vis taxation .Time is important for point of taxation that when the liability to pay tax will arise on goods and services . Let us address the issue one by one.
Time of Supply of Goods [ Sec.12 ]
1. The liability to pay tax shall arise only at the time of supply of goods. Earliest of the following shall be the time of supply
* Date of issue of invoice or the last date of issue of invoice u/s 31[1]
* 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.
2. Time of supply in case of reverse charges shall be earliest o
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/ CGST is paid
Example
General
Invoice date
Invoice due date
Payment in supplier books
Credit in bank a/c
Time of supply
Invoice raised before removal
10-11-2017
20-11-2017
28.11.2017
30.11.2017
10.11.2017
Advances received
15.11.2017
20.11.2017
10.11.2017
13.11.2017
10.11.2017
In case of movement of goods
Invoice date
Removal of goods
Delivery of goods
Receipt of Payment
Time of supply
Delayed issue of invoice
26.11.2017
20.11.2017
26.11.2017
26.11.2017
20.11.2017
Advance received
30.11.2017
10.12.2017
14.12.2017
20.11.2017
20.11.2017
Supply otherwise than movement of goods
Invoice date
Receipt of invoice by recipient
Delivery of goods
Receipt of payment
Time of supply
Delay issue of invoice
30.11.2017
05.12.2017
26.11.2017
10.12.2017
26.11.2017
Invoice issued before prior to delivery
20.11.2017
30.11.2017
26.11.2017
10.12.2017
20.11.2017
Reverse charge
Invoice date
Removal of goods
Receipt of goods
Payment by recipient
Ti
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be at the option of supplier, may be the date of issue of invoice
2. In case where tax is payable on supply of services under reverse charge, earliest of the following;
* Date of payment as entered in the books of recipient or the date when payment is debited in his bank account which ever is earlier
* 60 days from the date issue of invoice or any other document by supplier
* Where above provision shall not apply, the time of supply shall be the date of entry in the books of account of recipient.
3. 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
4. In case it is not possible to establish the time of supply as discussed above in [2&3] then
* In case of periodical return to be filed ,date on which periodical return has to be filed
* In all other cases , date on which SGST / CGST is to be paid
Example
General
Invoice date
Invoice due date
Payment in supplier books
Credit in bank a
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e determined as below;
1. In the case of goods or services have been supplied before the change of effective rate of tax
* Where the invoice is raised and payment is received 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
2. 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
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