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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 ..... VPL a manufacturer 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apply general provision mention in section 12(2) of Section of CGST Act. 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 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 supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12(2)(a). * Exception provided in the notification no. 66/2023 - following registered person required to pay tax at the time of receipt of advance in case of supply of goods under section 12(2)(a) * the registered person who opt for the composition levy section 10 of the CGST Act * the registered person making supply of specified actionable claims as defined in clause (102A) 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vt. Ltd. To supply of gas by pipeline to CGL Pvt. Ltd. For the period of one year. As per terms of contract - a) CGL ltd. Shall make payment 7th of the next month. b) Every Quarter, Trusty Ltd. Shall issue a statement of account showing Qty. and value of goods dispatched, payment received and payment due. The details of the various events are August 3, September 3, October 10 Payment of Rs. 2 lakhs made in each month for the quarter July to September. October 6 Statement of account for the quarter July to September issued by the supplier showing amount of Rs. 2,56,000/- as unpaid October 17 Balance payment of Rs. 56,000/- received by supplier for the quarter July - September In this Case - As per term 12(2), Time of supply shal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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