GST Time of Supply (Grade A)

Summary:

This GST Time of Supply (Grade A) note explains the time of supply under GST for goods and services. The time of supply determines when the tax liability needs to be paid. There are specific provisions for determining the time of supply for goods and services, as well as for changes in tax rates. The time of supply for goods under forward and reverse charges is determined by the date of invoice, payment, and receipt of goods. The time of supply for services under forward and reverse charges is determined by the date of invoice, provision of service, and receipt of payment. In the case of vouchers, the time of supply is determined by the date of issue or redemption. Residuary provisions apply when none of the other provisions apply.

Excerpt:

GST Time of Supply (Grade A)

Time of Supply Under GST

• GST Levied on the Supply of goods and services (u/s 9)
• Establish Scope of Supply (u/s 7)
• When the tax liability is to be paid i.e establish the time of supply
• Provisions for determination of time of supply are covered:-
  – Time of supply of goods (u/s 12)
  – Time of supply of services(u/s 13)
  – Time of Supply in case of change in Rate of Tax (u/s 14)
  The above sections contain specific as well as general provisions

Time of supply of goods under forward charge (u/s 12)

Earliest of:

a.Date of issue of Invoice

b.Last date by which invoice should have been issued.

c.Date of receipt of payment

Example:

X sold goods to Mr. Y worth Rs 10000. The invoice was issued on 15th January. The payment was received on 31st January. The goods were supplied on 20th January.

a.Date of issue of Invoice- 15th of January

b.Last date by which invoice should have been issued- 20th of January

c.Date of receipt of payment- 31st of January