GST

Time of Supply

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 Time of Supply

The time of supply fixes the point when the liability to pay GST arises. It also indicates
when a supply is deemed to have been made. The CGST/SGST Act provides separate
time of supply for goods and services.

Time of Supply

Section 12 Section 13

Time of Supply of Goods Time of Supply of Services

Section 12 Section 13 Time of Supply

(2) (2) Time of Supply in case of Forward charge

(3) (3) Time of Supply in case of Reverse Charge

(4) (4) Time of Supply in case of Vouchers

(5) (5) Time of Supply in Residuary Case

(6) (6) Time of Supply in case of addition in value by

way of interest, late fees or penalty or any
delayed payment of consideration

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 Section 12(2) – Time of Supply of Goods in case of Forward Charge

Time of Supply = Earlier of the following event

1 Date of Invoice

2 Due date of Invoice as per Section 31

Last date in which Invoice is required to be issued

A registered person supplying taxable goods shall, before or at the time of,—

a. Removal of goods for supply to the recipient, where the supply involves
movement of goods

b. Delivery of goods or making available thereof to the recipient, where the supply
doesn’t involves movement of goods

c. Issuance of periodical statement/receipt of periodical payment, in case of

continuous supply of goods

d. At the time of supply or 6 months from the date of removal, whichever is earlier,
in case of goods sent or taken on approval for sale or return

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Time of Supply of Goods in case of Composition Dealer

Time of Supply =

Earlier of the following event

1 Date of Invoice

2 Due date of Invoice as per Section 31

3 Date of Payment

Date of Payment

Earlier of the following event –

a. Entry in Books of Account

b. Credit in Bank Account

Excess payment up to Rs. 1000 - Option of taking invoice date as time of supply

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 Situation 1 Time of Supply in case Supply Involves movement of goods

1) For Normal supplier

 Date of Invoice or

 Date of Removal of goods

Whichever is Earlier ..

2) For Composition Dealer

• Date of Payment or

• Date of Invoice or

• Date of Removal of goods

Whichever is Earlier ..

Case Date of Date of Invoice Date of Receipt Time of Supply

Removal
of Payment

1 16th Oct, 2021 25th Oct, 2021 15th Oct, 2021

2 10th Oct, 2021 25th Nov, 2021 15th Oct, 2021

3 25th Oct, 2021 10th Oct, 2021 24th Oct, 2021

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Time of Supply in case Supply doesn’t involves movement of goods

1) For Normal supplier

• Date of Invoice or

• Date of Delivery of goods or making available thereof to the recipient

Whichever is Earlier ..

2) For Composition Dealer

• Date of Payment or

• Date of Invoice or

• Date of Delivery of goods or making available thereof to the recipient

Whichever is Earlier ..

Case Date of Date of Invoice Date of Receipt Time of Supply

Delivery
of Payment

1 16th Oct, 2021 25th Oct, 2021 15th Oct, 2021

2 10th Oct, 2021 25th Nov, 2021 15th Oct, 2021

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 3 25th Oct, 2021 10th Oct, 2021 24th Oct, 2021

4 25th Oct, 2021 15th Oct, 2021 30th Oct, 2021

TOS for Continuous Supply of Goods –

1) For Normal supplier

• Date of Invoice or

• Date of Issue of Statement/Receipt of Payment

Whichever is Earlier ..

2) For Composition Dealer

• Date of Payment or

• Date of Invoice or

• Date of Issue of Statement/Receipt of Payment

Whichever is Earlie

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Time of Supply in case of Sale on Approval Basisr ..

1) For Normal supplier

• Date of Invoice or

• Date of Supply/6 Months from date of Removal (Whichever Earlier)

Whichever is Earlier ..

2) For Composition Dealer

• Date of Payment or

• Date of Invoice or

• Date of Supply/6 Months from date of Removal (Whichever Earlier)

Whichever is Earlier ..

Case Date of Date of Acceptance Date of Time of Supply

Removal of Invoice by Receipt
goods recipient
of
Payment

1 1st 25th nov, 15th 25th

nov,2019 2019 nov,2019 nov,2019

2 1st 25th 15th 12th nov,

nov,2019 nov,2019 nov’2019 2019

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 3 1st oct 2019 15th may 15th may 2nd may
2020 2020 2020

4 1st oct 2019 12th feb 10th 2nd may

2020 feb,2020 2020

Section 12(3) – Time of Supply of Goods in case of Reverse Charge

Time of Supply = Earlier of the following event

1 Invoice + 31 days

2 Receipt of Goods

3 Date of Payment

If it is not possible to determine the time of supply by using these parameters, then the
time of supply will be the date of entry of goods in the books of account of the recipient
of supply.

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Date of Payment

Earlier of the following event –

a. Entry in Books of Account

b. Debit in Bank Account

Reference – Reverse charage-

Section 12(4) – Time of Supply in case of Vouchers

Meaning of Vouchers

Vouchers are instruments that can be exchanged as payment for goods or services of
the designated value. They are instruments that certain persons (potential suppliers) are
obliged to accept as consideration, part or full, for goods and/or services.

Time of Supply in case of Vouchers

Particulars Time of Supply

Supply is identifiable Date of issue of the voucher

at the point when voucher is issued

Supply is not identifiable Date of redemption of the voucher

at the point when voucher is issued

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 Section 12(5) – Time of Supply in residuary case

If the situation is not covered by any of the provisions discussed above, the time of
supply is fixed under section 12(5), in the following manner -

a. Due date for filing of the periodical return, or

b. In any other case, date on which GST is paid.

Illustration

Investigation reveals clandestine removal of goods by a supplier who is not registered

under GST. The evidence is in the form of noting, often undated, and some
corroborative material.

The supplier voluntarily pays tax during the investigation, to close the case. The time of
supply will be the date on which the tax is paid, as being unregistered, the supplier is
not required to file periodical returns.

Section 12(6)
Time of Supply in case of addition in value by way of interest, late fees or penalty or
any delayed payment of consideration

Section 12(6) prescribes that time of supply in case of addition in value by way of
interest/ late fee/penalty for delayed payment of consideration for goods is the date on
which the supplier receives such addition in value.

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 Section 13(2) - Time of Supply of Services in case of Forward Charge

For supply of service on which the supplier is liable to pay tax, the time of supply will be
the earlier of the dates arrived as follows -

a. Date of invoice or date of receipt of payment, whichever is earlier,

if the invoice is issued in time as per section 31;

b. Date of provision of service or date of receipt of payment, whichever is earlier,

if the invoice is not issued in time as per section 31,

If these two methods are not applicable, the time of supply will be the date on which
the recipient of service shows receipt of the service in his books of account.

Excess payment up to Rs. 1000 - Option of taking invoice date as time of supply

In terms of the proviso to sub-section (2) of section 13, if payment received is up to Rs.
1,000 in excess of the invoice value, the supplier can choose to take the related invoice
date as the time of supply in relation to this excess value.

Date of Payment

Earlier of the following event –

a. Entry in Books of Account

b. Credit in Bank Account

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Time limit for issuance of invoice for supply of services

a. As per section 31(2) read with rule 47 of CGST Rules, the tax invoice needs to be
issued either before the provision of service or within 30 days

(45 days in case of insurance companies/ banking companies/ financial

institutions including NBFCs)

from the date of supply of service.

b. In case of cessation of supply of services before completion of supply, the invoice

(to the extent of the supply made before such cessation) should be issued at the
time when the supply ceases.

c. In case of continuous supply of services, the invoice should be issued either

(i) on/ before the due date of payment or

(ii) before/ at the time when the supplier of service receives the payment

(iii) on/ before the date of completion of the milestone event when the
payment is linked to completion of an event.

d. In case of insurance companies/ banking companies/ financial institutions

including NBFCs/ telecom companies/ notified supplier of services making taxable
supplies between distinct persons as specified in section 252,

invoice may be issued before or at the time of recording such supply in the books
of account or before the expiry of the quarter during which the supply was made.

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 invoice

Issued within time NOT issued within time

limit u/s 31 limit u/s 31

TOS= I/P w.e.earlier TOS= S/P w.e.earlier

invoice

Issued within 30/45 NOT issued within 30/45

days from completion days from completion of
of service service

TOS= S/P
TOS= I/P w.e.earlier
w.e.earlier

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 CASE DATE OF DATE OF INVOICE DATE OF TIME OF
COMPLETION OF PAYEMNET SUPPLY
SERVICE

1 10th oct 2021 25th oct 2021 15th oct 2021

2 10th oct 2021 25th nov 2021 15th oct 2021

3 10th oct 2021 25th oct 2021 9th oct 2021

4 10th oct 2021 25th nov 2021 7th oct 2021

Date of actual Time [Date] of Invoice, Bill or Date on which payment

provision of service Challan as the case may be received
S.No.

1. 10-11-2017 30-11-2017 15-12-2017

2. 10-11-2017 30-11-2017 15-11-2017

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3. 10-11-2017 30-11-2017 15-11-2017 (Part) and

10-12-2017 (remaining)

4. 10-11-2017 30-11-2017 06-11-2017 (Part) and

09-11-2017 (remaining)

5. 10-11-2017 30-11-2017 06-11-2017 (Part) and

16-11-2017 (remaining)

6. 10-11-2017 12-12-2017 30-04-2018

7. 10-11-2017 12-12-2017 05-11-2017 (Part) and

25-12-2017 (remaining)

8. 10-11-2017 22-12-2017 12-12-2017

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 Section 13(3) - Time of Supply of Services in case of Reverse Charge

The time of supply for such service will be the earlier of the following –

a. Date of payment, or

b. Invoice + 61 days

If it is not possible to determine the time of supply by using these parameters, then the
time of supply will be the date of entry of the service in the books of account of the
recipient of supply.

Date of Payment

Earlier of the following event –

a. Entry in Books of Account

b. Debit in Bank Account

Import of services between associated enterprises

In the case of service received from an associated enterprise located outside India, the
time of supply will be the date of payment for the service, or the date of entry of the
service in the books of account of the recipient, whichever is earlier.

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 Section 13(4) – Time of Supply in case of Vouchers

Particulars Time of Supply

Supply is identifiable Date of issue of the voucher

at the point when voucher is issued

Supply is not identifiable Date of redemption of the voucher

at the point when voucher is issued

Section 13(5) - Time of Supply in residuary case

If the situation is not covered by any of the provisions discussed above, the time of
supply is fixed under section 13(5), in the following manner -

a. Due date for filing of the periodical return, or

b. In any other case, date on which GST is paid.

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 Section 13(6)
Time of Supply in case of addition in value by way of interest, late fees or penalty or
any delayed payment of consideration

Section 13(6) prescribes that time of supply in case of addition in value by way of
interest/ late fee/penalty for delayed payment of consideration for services is the date
on which the supplier receives such addition in value.

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