9911796707
TMI BlogTime of Supply of Goods – Under Forward chargeX X X X Extracts X X X X X X X X Extracts X X X X ..... er asks hi supporting manufacturer Goodluck to develop a mould for PQR for separate consideration. The said mould will kept and used by ABC for manufacture of components for 5 year. In this case, there is no movement of mould. In case of continuous supply of goods , where successive statements of accounts or successive payments are involved - The invoice should be issued before or at the time of issuance of periodical statement or receipt of periodical payment [Section 31(4)]. In case of goods sent or taken on approval for sale or return , are removed before the supply takes place Invoice should be issued before or at the time of supply or 6 months from the date of removal, whichever is earlier [Section 31(7)]. We consider below how the tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quired to issue the invoice as per section 31(1) of CGST Act ], or Date of receipt of payment by the supplier, to the extent the payment covers the supply of goods, ( whichever is earlier mentioned below ) Date of entry in the books of accounts, or Credit date in the bank account Significance of to the extent the invoice or payment covers the supply of goods Suppose a part of the consideration is paid in advance or invoice is issued for part-payment, the time of supply will not cover the full supply. The supply is deemed to have been made to the extent it is covered by the invoice or the part advance payment. Time of Supply in case of amount of upto INR 1,000/- received in excess [ In other word Advance Received for the supply of goods u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of section 2 of the said Act. [ w.e.f. 01.10.2023 Notification 50/2023 ] Rate of Tax or nature of supply is not determinable As per proviso of rule 50 of the CGST Rules, where at the time of receipt of advance (i) Rate of tax is not determinable, tax shall be paid at the rate of 18% or (ii) Nature of supply is not determinable, the same shall be treated as inter-state supply Case Law Payment of GST on receipt of Advance towards supply of Goods ( 2023 (5) TMI 964 IN RE: M/S. PES ENGINEERS PRIVATE LIMITED HYDERABAD ) Issue : Whether the applicant is required to pay GST on initial advance of 5% and interim advance of 7.5% on Ex works value of goods supplied under First Contract Agreement Decision: it was held that the applicant is eligible f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account for the quarter July to September issued by the supplier showing amount of ₹ 2,56,000/- as unpaid October 17 Balance payment of ₹ 56,000/- received by supplier for the quarter July - September In this Case - As per term 12(2), Time of supply shall be earliest of following dates Date of issue of invoice by the supplier, or Last date on which the supplier is required to issue the invoice [as per sec. 31(4)] In case of continuous supply invoice should be issued before or at the time of issuance of periodical statement or receipt of periodical payment. Payment received before issued of periodical statement of ₹ 2 lakh each on or before August 3 and September 3, when monthly payment is issued of ₹ 2 lakh are rece ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
