Time of Supply

Time of supply? Why is it important to determine Time of supply? It refers to the time at which the supply is considered to be made for determining the date on which the tax is required to be paid to government. For Goods or Services or both, time of supply plays a major role, different provisions are there to determine the Time of Supply.
Time of Supply for Goods

Time of supply of goods is earliest of:

  1. Date of issue of invoice
  2. Last date on which invoice should have been issued
  3. Date of receipt of payment/ advance*.

*Note:  GST is not applicable to advances under GST. GST on Advance is payable at the time of issue of the invoice.  Notification No. 66/2017 – Central Tax issued on 15.11.2017

Note: Last date on which invoice should have been issued, u/s 31 of CGST Act, is on or before, the Date of Removal of Goods for supply to recipient or delivery of goods or making goods available to recipient.

Time of Supply for Services

Time of supply of services is earliest of:

  1. Date of issue of invoice
  2. Date of receipt of advance/ payment.
  3. Date of provision of services (if invoice is not issued within prescribed period)
Time of Supply under Reverse Charge

In case of reverse charge the time of supply for service receiver is earliest of:

  1. Date of payment*
  2. 30 days from date of issue of invoice for goods (60 days for services)

*w.e.f. 15.11.2017 ‘Date of Payment’ is not applicable for goods and applies only to services.  Notification No. 66/2017 – Central Tax 

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