TIME OF SUPPLY OF GOODS AND SERVICES - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

10. TIME OF SUPPLY OF GOODS AND SERVICES 10.1 The time of supply fixes the point when the liability to charge GST arises. It also indicates when a supply is deemed to have been made. The CGST Act, 2017 provides separate time of supply for goods and services. 10.2 In terms of Section 12(1) of the CGST/SGST Act, 2017 the time of supply of goods shall be the earlier of the following - (i) the date of issue of invoice by the supplier or the last date on which he is required to issue the invoice as per Section 31 of CGST Act, 2017, with respect to the supply; or (ii) the date on which the supplier receives the payment with respect to the supply. 10.3 Section 13(1) of the CGST Act, 2017 provides for time of supply of services. The time of supply of services shall be the earlier of the following - (a) the date of issue of invoice by the supplier if the invoice is issued within the period prescribed under Section 31 or the date of receipt of payment whichever is earlier; or (b) the date of provision of service, if the invoice is not issued within the period prescribed under Section 31 or the date of receipt of payment whichever is earlier; (c) the date on which the recipient shows the receipt of services in his books of account, in case where the clauses do not apply. 10.4 The time of supply of voucher (e.g. Gift Voucher, etc.) in respect of goods and services 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. 10.5 If it is not possible to determine the time of supply in the manner stated above, then as per Section 12(5) and 13(5) of the CGST Act, 2017, if periodical return has to be filed, then the due date of filing of such periodical return shall be the time of supply. In other cases, it will be the date on which the CGST/SGST/IGST is actually paid. 10.6 The time of supply of goods in case of tax payable under reverse charge mechanism will be the earliest of the following dates: (a) date of receipt of goods; or (b) date on which payment is made; or (c) the date immediately following 60 days from the date of issue of invoice (Inserted by Section 117 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.) [by the supplier, in case where invoice is required to be issued by the supplier]. (d) (Inserted by Section 117 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.) [the date of issue of invoice by the recipient, in cases where invoice is to be issued by the recipient]. (e) Where it is not possible to determine the time of supply under the above three clauses, the time of supply shall be the date of entry in the books of account of the recipient of supply. 10.7 The time of supply of service in case of tax payable under reverse charge mechanism will be the earliest of the following dates: (a) date on which payment is made; or (b) the date immediately following sixty days from the date of issue of invoice by the supplier. 10.8 The time of supply with regard to an addition in value on account of interest, late fee or penalty on delayed consideration shall be the date on which the supplier received such additional consideration. 10.9 In cases where supply is completed prior to change in rate of tax, the time of supply will be- (i) where the invoice for the same has been issued and the payment is also received after the change in rate of tax, the time of supply shall be the date of receipt of payment or the date of issue of invoice, whichever is earlier. For supply of goods payment of tax need to be made only at the time of issue of invoice; or (ii) where the invoice has been issued prior to change in rate of tax but the payment is received after the change in rate of tax, the time of supply shall be the date of issue of invoice; or (iii) where the payment is received before the change in rate of tax, but the invoice for the same has been issued after the change in rate of tax, the time of supply shall be the date of receipt of payment. For supply of goods payment of tax need to be made only at the time of issue of invoice. 10.10 In cases where supply is completed after change in rate of tax, the time of supply will be- (i) where the payment is received after the change in rate of tax but the invoice has been issued prior to the change in rate of tax, the time of supply shall be the date of receipt of payment. For supply of goods payment of tax need to be made only at the time of issue of invoice; or (ii) where the invoice has been issued and the payment is received before the change in rate of tax, the time of supply shall be the date of receipt of payment or date of issue of invoice, whichever is earlier. or; (iii) where the invoice has been issued after the change in rate of tax but the payment is received before the change in rate of tax, the time of supply shall be the date of issue of invoice 10.11 In respect of services between the associated enterprise, the time of supply in the case of supply of services where the supplier is located outside India will be the earlier of date of entry in the books of account of the recipient of supply or the date of payment. That is, the levy under GST is attracted once such book entries are made even if no actual payment takes place or no invoice is issued. 10.12 The time of supply in respect of continuous supply of services will be the date by which the invoice is actually issued or is required to be issued or the date of receipt of payment, whichever is earlier.