Time of Supply - GST

[JUGAL DOSHI]

Background –

Point of taxation means the point in time when goods have been deemed to be supplied or services have been deemed to be provided. The point of taxation enables us to determine the rate of tax, value, and due dates for payment of taxes.Under GST the point of taxation, i.e., the liability to pay CGST / SGST, will arise at the time of supply as determined for goods and services.

Sr. No.	Particulars	Goods	Services
1	Normal mechanism if invoice issued in time(See Note 1)	Earlier of two: Date of invoice or Date of receipt of payment	Earlier of two: Date of invoice or Date of receipt of payment
	Normal mechanism if invoice not issued in time	Earlier of two: Last date for issue of invoiceor Date of receipt of payment	Earlier of two: Date of provision of service or Date of payment
	Others		Date as per books
2	Reverse charge mechanism	Earlier of following:- Date of receipt of goods or Date of payment or Date immediately following 30 days from the date of issue of invoice/or any document in lieu thereof Where above mentioned points are not possible, date of entry in books of recipient is considered	Earlier of following:- Date of payment or Date immediately following 60 days from the date of issue of invoice Where above mentioned points are not possible, date of entry in books of recipient is considered
	In case of associated enterprise outside India		Date of supply should be earlier of two :- Date of entry in books of accounts or Date of payment
3	Supply of vouchers (See note 3) Identifiable supply Other cases	Date of issuance of voucher Date of redemption of voucher	Date of issuance of voucher Date of redemption of voucher
4	Other or residual In case periodical return to be filed Other case	Date on which such return is to be filed Date on which tax is to be paid	Date of return on which it is to be filed Date on which tax is to be paid
5	In case of addition to the supply(by way of interest, penalty or late fees)	Date of supply to the extent of addition should be date on which supplier receives such addition.	Date of supply to the extent of addition should be date on which supplier receives such addition

Notes

1. In case the supplier receives amount up to INR 1000 in excess of invoice amount, then he can opt the date of Invoice in respect of such excess

2. “Supply” shall bedeemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment.

3. Date of receipt of payment will be earlier of two:-

1. Date on which entry entered in books of accounts or
2. Date on which payment credited to bank account

4. “voucher” means 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;

E.g. – Gift voucher by jeweller which can be redeemed for purchase of gold – As goods which are supplied are identifiable at point of issue – Time of supply will be date of issuing gift voucher

E.g. – Gift Voucher by Shoppers Stop which can be redeemed for purchase of vide range of goods supplied by it– As goods which are supplied are not identifiable at point of issue – time of supply will be date of redemption of gift voucher

Time limit for issue of invoice

Sr. No.	Particulars	Situation	Time limit
1	In case of supply of goods	Supply involving movements of goods	Before or at the time of removal of goods for supply to the recipient
		Other cases	Before or at the time of  delivery of goods or making available thereof to the recipient
2	In case of continuous supply of goods	Having successive statements of accounts	Before or at the time ofeach such statement is issued or
		Successive payments	Before or at the time of each such payment is received
3	In case of supply of services	Banking company or Financial/Non-financial institutions	Before or within 45 days from date of supply of service
		Other cases	Before or within 30 days from date of supply of service
		Supply between distinct persons in case of insurance or banking company or financial institution including NBFC or telecom operator or class of supplier as notified by government	When such supplier records the same in his books of account or before the expiry of the quarter during which the supply was made.
4	In case of continuous supply of services	Due date of payment is ascertainable	On or before the due date of payment
		Due date of payment is not ascertainable	On or before such time when the supplier of service receives the payment
		Payment is linked to the completion of an event	Onor before completion of that event
5	Other	In a case where the supply of services ceases under a contract before the completion of the supply	At the time when the supply ceases
		Where the goods being sent or taken on approval for sale or return are removed before the supply takes place	Before or at the time of supply or six months from the date of removal, whichever is earlier

Time of supply in case of change of rate

Sr. No.	Invoice	Payment	Supply before change of rate	Supply after change of rate
1	After	After	Earlier of following two:- Date of invoiceor Receipt of payment	NA
2	Prior	After	Date of issue of invoice	Date of receipt of payment
3	After	Prior	Date of receipt of payment	Date of issue of invoice
4	Prior	Prior	NA	Earlier of following two:- Date of invoice  or Receipt of payment

Notes:-Date of receipt of payment will be date on which entry credited to bank account if such credit in the bank account is after 4 working days from the date of change in the rate of tax