CHAPTER-TIME OF SUPPLY

INTORDUCTION

GST is payable on supply of goods or services. So,

at which point of time does GST become payable?
Provisions relating to ‘time of supply’ provide
answer to this question.

Sec (12) Time of Supply in case of Supply of Goods

Sec (13) Time of Supply in case of Supply of Services

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 CHAPTER-TIME OF SUPPLY

SEC (12) TIME OF SUPPLY (GOODS)

Forward charge Sec 12(1)

The liability to pay tax on goods shall arise at the time of supply, in terms of the provisions of this section.

Forward charge Sec 12(2) Reverse charge Sec 12(3) Vouchers Sec 12(4)

Supplier’s View Recipient’s View (a) Date of issue of voucher, if

the supply is identifiable.
(b) Date of redemption of
(a) Date of issue of invoice (a) Date of receipt of goods
voucher in other case
OR OR
Last date to issue invoice (b) Date of making payment
Residual cases
(Note-1) (Note-3)
(If not covered anywhere)
OR OR
Sec 12(5)
(b) Date of receipt of payment (c) 31St day from the date of
(Note-2) issue of invoice/another
document by supplier (a) Due Date of Return
(Registered Person)
Whichever is earlier Whichever is earlier
(b) Date of payment of tax
(Unregistered Person)

If (a)/(b)/(c)
UNASCERTAINABLE Addition in value by way of
Time of Supply = Interest/late fees/penalty for
As per Notification issued by Date of book entry in the delayed payment
CBIC -Supplier of goods, not to books of recipient.
Sec 12(6)
pay GST on advance.
Hence TOS shall be determined
using 12(2)(a) Date of receipt of
interest/penalty/late fees

Note-1 Last date to issue invoice

Before or at the time of-
(a) Generally-
Removal of goods (supply involves movement) or delivery of goods/making available, in any other case.
(b) In case of continuous supply of goods-
Issuance of periodical statement/periodical payment.
(c) In case of goods sent or taken on approval basis-
Supply or 6 months from the date of removal, whichever is earlier.
Note-2 Date of receipt of payment
Date of entry in book or Date of Credit in bank account (whichever is earlier)
Note-3 Date of making payment
Date of entry in book or Date of Debit in bank account (whichever is earlier)
Note-4 Access advance upto Rs.1000- TOS-DOI/DOP at the option of the supplier.

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 CHAPTER-TIME OF SUPPLY

SEC (13) TIME OF SUPPLY (SERVICES)

Sec 13(1)

The liability to pay tax on services shall arise @ the time of supply,in terms of the provisions of this section.

Forward charge Sec 13(2) Reverse charge Sec 13(3) Vouchers Sec 13(4)

Supplier’s View (a) Date of making payment (a) Date of issue of voucher, if
OR the supply is identifiable.
(b) 61st day from the issue of (b) Date of redemption of
Whether the invoice is issued invoice by supplier voucher in other case
on time
(Note-1)
Residual cases
Whichever is earlier
(If not covered anywhere)
Sec 13(5)
Yes NO If (a)/(b) UNASCERTAINABLE
TOS = Date of book entry in
(a) Due Date of Return
(a) Date of (b) Date of the books of recipient.
(Registered Person)
invoice Provision (b) Date of payment of tax
Note: Import of services b/w
OR of Service (Unregistered Person)
Associated Enterprises
Date of OR
receipt of Date of Addition in value by way of
payment receipt of Interest/late fees/penalty for
(a) Date of making payment
Earlier payment OR delayed payment

(Note-2) Earlier (b) Date of book entry in the Sec 13(6)

(Note-3) books of recipient.

Whichever is earlier

(c) If (a)/(b) Date of receipt of

UNASCERTAINABLE interest/penalty/late fees
TOS = Date of book entry in
the books of recipient.

Note-1 Last date to issue invoice

(a) Generally- within 30 days (45 days in case of Insurance Co, Banking and Financial Institution
including NBFC) from the date of supply of service.
(b) In case of continuous supply of services-

Due Date of payment is ascertainable On/ before the Due date of payment
Due Date of payment is not ascertainable On/ before the Date of payment
Payment is linked to the completion of an event On/ before the Date of completion of event
Note-2 Access advance upto Rs.1000- TOS-DOI/DOP at the option of the supplier.
Note-3 Date of receipt of payment and date of making payment- Same as was in case of goods.
Note-4 Access advance upto Rs.1000- TOS-DOI/DOP at the option of the supplier.

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