GST – GST Law and Procedure – 005 – Chapter Five Time of Supply in GST Time of Supply In order to calculate and discharge tax liability it is important to know the date when the tax liability arises i.e. the date on which the charging event has occurred. In GST law, it is known as Time of Supply. GST law has provided separate provisions to determine the time of supply of goods and time of supply of services. Sections 12, 13 & 14 of the CGST Act, 2017, deals with the provisions related to time of supply and by virtue of section 20 of the IGST Act, 2017, these provisions are also applicable to inter-State supplies leviable to Integrated tax. Point of time when supplier receives the payment or date of receipt of payment The phrase the date on which supplier receives the payment or the date of receipt of payment means the date on which payment is entered in books of accounts of the supplier or the date on which the payment is credited to his bank account, whichever is earlier. Time of
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e special procedures to be followed by such persons including those with regard to registration, furnishing of return, payment of tax and administration of such persons. In exercise of powers conferred by this section, the government on the recommendations of the GST Council has notified the registered persons (who have not opted for composition levy) as the class of persons who shall pay GST on outward supply of goods at the time of supply specified in clause (a) of sub-section (2) of Section 12. Thus, in respect of supply of goods by normal registered persons (other than composition dealers), the time of supply will be the issue of invoice (or the last date by which invoice has to be issued in terms of Section 31) Therefore, all taxpayers (except composition taxpayers) are exempted from paying GST at the time of receipt of advance in relation to supply of goods. The entire GST shall be payable only when the invoice is issued for such supply of goods. The special procedure will be app
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to have been made to the extent it is covered by the invoice or by the payment, as the case may be. For example, Firm A receives an advance of ₹ 2500/- on 29.07.2017 for provision ofservices worth ₹ 10000/- to be supplied in the month of September, then it is deemed that firm A has made a supply of ₹ 2500/- on 29.07.2017 and tax liability on ₹ 2500/- is to be discharged by 20.08.2017. Although tax is payable on any advance received for a supply of services, however for the convenience of trade it is provided that if a supplier of taxable services receives an amount up to ₹ 1000/- in excess of the amount indicated on the tax invoice, then the supplier has an option to take the date of issue of invoice in respect of such supply as time of supply. For example, if a supplier has received an amount of ₹ 1500/- against an invoice of ₹ 1100/- on 25.07.2017 and date of invoice of next supply to the said recipient is 14.08.2017, then he has option to tr
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m the date of issue of invoice or any other legal document in lieu of invoice by the supplier. However, if it is not possible to determine the time of supply in aforesaid manner then the time of supply is the date of entry of the transaction in the books of accounts of the recipient of supply. Time of supply of services in case of supply by Associated Enterprises located outside India In this case, the time of supply is the date of entry in the books of account of the recipient or the date of payment, whichever is earlier. Time of supply in case of supply of vouchers Voucher has been defined in the CGST Act, 2017 as an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument.
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termine the time of supply under aforesaid provisions, the time of supply is,- Due date of filing of return, in case where periodical return has to be filed Date of payment of tax in all other cases. Time of supply of goods or services related to an addition in the value of supply by way of interest, late fees or penalty Time of supply related to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which suppliers receives such addition in value. For example a supplier receives consideration in the month of September instead of due date of July and for such delay he is eligible to receive an interest amount of ₹ 1000/- and said amount is received on 15.12.2017. The time of supply of such amount (Rs. 1000/-) will be the 15.12.2017 i.e. the date on which it is received by the supplier and tax liability on this is to be discharged by 20.01.2018. Change in Rate of Tax in respect of supply of goods or
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