Time of Supply Under GST Act

Time of Supply Goods And Services Under GST Act

Time of Supply of Services And Goods Under GST Act

Time value of supply of Goods And Services Under GST Act” is important to decide when supply of goods/services and to find   due date of payment of tax.

This article include – Section 12 , Section 13, Section 14

   1. Time value of supply of Goods (Section 12)

  • Section 12(1) – goods with normal charge

Time of supply will be earlier from the following of dates:

  • The date on which the invoice was issued. In case of invoice not issued than last date of which supplier need to issue invoice under section 31(1) should be considered  
  • The date on which the supplier has received the payment
  • Date of payment received is earlier of payment has been booked in accounts or credited in his books.
  • Section 12(3) – goods with reverse charge

Time of supply will be earlier from the following of dates:

  • The day on which the goods received
  • Earlier of date of payment which book entry passed in recipient’s books or date on which the amount was debited from the account of the recipient
  • 31 day from invoice or any other document is issued by the supplier

In case of date of supply is not determined from the above mention 3 clauses than date of supply will be the date of entry in the books of recipient of supply

   2. Time of supply of services (Section 13)

  • Section 13(2) – service with normal charge

Time of supply of service will be earlier from the following of dates:

  • Earlier of – The date on which the invoice was issued within prescribe limitor date of receipt of payment.
  • Earlier of – the date of provision of service, if invoice issue with prescribe limit or date of receipt of payment.
  • if (a) or (b) not apply than the date on which recipient booked service in his books
  • Date of payment received is earlier of payment has been booked in accounts or credited in his books.
  • Section 13(3) – service with reverse charge

Time of supply of service under reverse charge will be earlier of the following of dates:

  • Date of payment which is entered in books of account of receiver or date of payment debited from bank of recipient.
  • 61 date of invoice or any other document is issued.

In case of date of supply is not determined from the above mention 2 clauses than date of supply will be the date of entry in the books of recipient of supply.

  • Time of Supply of services in case of supply by associated enterprise located outside India

The time of supply will be the earlier of the following:

  • Date of entry in the books of recipient of supplier
  • Date of payment

   3. Change in the rate of supply (Section 14)

This section is override section 12 and section 13 in case of rate of tax is changed in following manner

  1. Supply is completed before the change in rate of tax
  • Invoice and payment received after change in rate
  • date of invoice or date of receipt of payment (New rate apply)
  • Invoice issued prior and payment received after change in rate of tax
  • Date of issue of invoice (Old Rate apply)
  • Invoice issued after and payment received prior to change in rate of tax
  • Date of receipt of payment (Old rate apply)

      2. Supply is completed after change in rate of tax

  • Invoice and payment received before change in rate
  • Earlier of date of invoice or date of receipt of payment (Old rate apply)
  • Invoice issued prior and payment received after change in rate of tax
  • Date of receipt of payment (New Rate apply)
  • Invoice issued after and payment received prior to change in rate of tax
  • Date of issue of invoice (New rate apply)

   Conclusion –  ” Time of Supply of Services And Goods Under GST Act “

  1. TOS Goods > 
    • Normal Charge > Earlier of > Date of Invoice or Payment received >
    •  Reverse Charge > Earlier of > Date of goods received or date of payment or 31 day of invoice or any other document issued
  2. TOS Services >
    •  Normal charge > Earlier of >Earlier of  (a) date of payment or 31 day of invoice (b) Earlier of date of provision of service, if invoice issued within section 31(2) or date of receipt of payment (c) If (a) and (b) not apply than date on which recipient show the service received in his books
    •  Revers charge > Earlier of > date of payment or 61 day of invoice or any other document issued by supplier
  3. Change in rate of Tax > Supply completed before > Invoice issued or payment received any of this made prior to date of rate change than Old Rate otherwise New Rate
  4. Change in rate of Tax > Supply completed after > Invoice issued or payment received any of this made after to date of rate change than New Rate otherwise Old Rate

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