On completion of this lesson, you
will be able to understand:
·Meaning of
Time of Supply
·Section
12(2) - Time of Supply for Goods
·Section
12(3) - Time of Supply under Reverse Charge
·Section
12(4) - Time of Supply for Vouchers
·Other Cases.
Please go through the First
Video of the Chapter 5.
Time of supply
The time of supply fixes
the point when the liability to charge GST arises. It also indicates when a
supply is deemed to have been made.
There is separate time of supply for goods and
services.
Time of Supply – Goods
The time of supply of goods
will be calculated as below.
Supply
Calculation
Forward charge
The Earliest of following should be taken:
1. Date of issue
of invoice *
OR
2. Date of receiving the payment**
* Date of Issue of Invoice
Date of issue of invoice by the supplier or the last date on which he is
required to issue the invoice with respect to the Supply u/s. 31(1).
Time limit for issue of invoice u/s Sec. 31(1) is before or at the time
of –
a.Removal of goods, where supply involves movement of
goods;
b.Delivery of goods or making available to the
recipient, in any other case.
** Date of Receiving the
Payment
Date of Receiving the Payment shall be earliest of the
following:
a.The date on which the payment is entered in
suppliers books of account or
b.The date on which the payment is credited to suppliers’
bank account.
For example:
M/s Indus Enterprises has
supplied goods on 20th July, 2018. The invoice is issued on 15th
July 2018. The payment was received by cheque on 30th July 2018 and
it was accounted on the same day. The cheque was cleared on 3rd
August 2018. Determine the time of supply.
The time of supply shall be
the earliest of date of issue of invoice or the date of payment. The following
is the analysis of the various dates.
Particulars
Events - Dates
Dates
Date of Invoice & Date of Payment
Time of
Supply
Date of
Invoice
Date of issue of
invoice
15.07.2018
15.07.2018
15.07.2018
Last date for
issue of invoice
20.07.2018
Date of
Payment
Accounted in
Books
30.07.2018
30.07.2018
Credited in Bank
Account
03.08.2018
Note: Here the last date for
issue of invoice u/s 31(1) shall be the date of removal of goods where supply
involves movement of goods i.e. 20.07.2018
Time of supply on continuous supply of goods
The time of supply of
continuous supply of goods is;
a) Where successive
statements of accounts or successive payments are involved, the date of expiry
of the period to which such successive statements of accounts or successive
payments relate.
b) Where there are no
successive statements of account or successive payments involved, the date of
issue of the invoice or the date of receipt of payment whichever is earlier.
Time of supply of “Goods sent on approval basis”
Goods sent on Approval
basis means the buyer can confirm the sale or reject the goods on a later
stage. In case of supply on approval basis, the time of supply shall be the
time at which
a)It is known whether a supply will take place or
b)Six months from the date of supply, whichever is
earlier.
Time of Supply of goods under Reverse Charge –
Sect. 12(3)
Supply
Calculation
Reverse charge
The Earliest of Following should be taken:
1.
Date of receipt of goods or
2. Date of payment* or
3. Date immediately following 30 days
from date of invoice.
If
above events are unable to be determined, then the date of entry in the books
of account of the recipient will be the time of supply
* Date of Payment
Date of Payment shall be earliest of the following:
a.The date on which the payment is entered in
Recipients books of account or
b.The date on which the payment is debited to
Recipients bank account.
Time of
Supply of goods in case of vouchers – Sec. 12(4)
Supply
Calculation
Vouchers
1.Date of issue of voucher, if the supply is
identifiable at that point; or
2.The date of redemption of the voucher, in all other
cases.
Time of
Supply in any other case
Where it is not possible to
determine the time of supply, then the time of supply will be
a.In a case where periodical return has to be filed,
the date on which such return is to be filed; or
b.In any other case, the date on which the tax is
paid.
Addition in Value of Supply
If there is addition in
value of supply by way of interest, late fee or penalty for delayed payment of
any consideration, then the date of receipt of such addition in value will be
the Time of Supply.
Where the supplier receives
an amount up to one thousand rupees in excess of the amount indicated in the
tax invoice, the time of supply will be the date of issue of invoice in respect
of such excess amount. It is at the option of the Supplier.
Part Payment
Suppose part advance payment
is made or invoice issued is for part payment, the supply shall be deemed
to have been made to the extent it is covered by the invoice or the part
payment. The Time of Supply will not
cover the full supply.
Time of Supply for Goods
SECTION : Time of Supply
DESCRIPTION
Lesson Objectives
On completion of this lesson, you will be able to understand:
· Meaning of Time of Supply
· Section 12(2) - Time of Supply for Goods
· Section 12(3) - Time of Supply under Reverse Charge
· Section 12(4) - Time of Supply for Vouchers
· Other Cases.
Please go through the First Video of the Chapter 5.
Time of supply
The time of supply fixes the point when the liability to charge GST arises. It also indicates when a supply is deemed to have been made.
There is separate time of supply for goods and services.
Time of Supply – Goods
The time of supply of goods will be calculated as below.
Supply
Calculation
Forward charge
The Earliest of following should be taken:
1. Date of issue of invoice *
OR
2. Date of receiving the payment**
* Date of Issue of Invoice
Date of issue of invoice by the supplier or the last date on which he is required to issue the invoice with respect to the Supply u/s. 31(1).
Time limit for issue of invoice u/s Sec. 31(1) is before or at the time of –
a. Removal of goods, where supply involves movement of goods;
b. Delivery of goods or making available to the recipient, in any other case.
** Date of Receiving the Payment
Date of Receiving the Payment shall be earliest of the following:
a. The date on which the payment is entered in suppliers books of account or
b. The date on which the payment is credited to suppliers’ bank account.
For example:
M/s Indus Enterprises has supplied goods on 20th July, 2018. The invoice is issued on 15th July 2018. The payment was received by cheque on 30th July 2018 and it was accounted on the same day. The cheque was cleared on 3rd August 2018. Determine the time of supply.
The time of supply shall be the earliest of date of issue of invoice or the date of payment. The following is the analysis of the various dates.
Particulars
Events - Dates
Dates
Date of Invoice & Date of Payment
Time of
Supply
Date of
Invoice
Date of issue of
invoice
15.07.2018
15.07.2018
15.07.2018
Last date for
issue of invoice
20.07.2018
Date of
Payment
Accounted in
Books
30.07.2018
30.07.2018
Credited in Bank
Account
03.08.2018
Note: Here the last date for issue of invoice u/s 31(1) shall be the date of removal of goods where supply involves movement of goods i.e. 20.07.2018
Time of supply on continuous supply of goods
The time of supply of continuous supply of goods is;
a) Where successive statements of accounts or successive payments are involved, the date of expiry of the period to which such successive statements of accounts or successive payments relate.
b) Where there are no successive statements of account or successive payments involved, the date of issue of the invoice or the date of receipt of payment whichever is earlier.
Time of supply of “Goods sent on approval basis”
Goods sent on Approval basis means the buyer can confirm the sale or reject the goods on a later stage. In case of supply on approval basis, the time of supply shall be the time at which
a) It is known whether a supply will take place or
b) Six months from the date of supply, whichever is earlier.
Time of Supply of goods under Reverse Charge – Sect. 12(3)
Supply
Calculation
Reverse charge
The Earliest of Following should be taken:
1. Date of receipt of goods or
2. Date of payment* or
3. Date immediately following 30 days from date of invoice.
If above events are unable to be determined, then the date of entry in the books of account of the recipient will be the time of supply
* Date of Payment
Date of Payment shall be earliest of the following:
a. The date on which the payment is entered in Recipients books of account or
b. The date on which the payment is debited to Recipients bank account.
Time of Supply of goods in case of vouchers – Sec. 12(4)
Supply
Calculation
Vouchers
1. Date of issue of voucher, if the supply is identifiable at that point; or
2. The date of redemption of the voucher, in all other cases.
Time of Supply in any other case
Where it is not possible to determine the time of supply, then the time of supply will be
a. In a case where periodical return has to be filed, the date on which such return is to be filed; or
b. In any other case, the date on which the tax is paid.
Addition in Value of Supply
If there is addition in value of supply by way of interest, late fee or penalty for delayed payment of any consideration, then the date of receipt of such addition in value will be the Time of Supply.
Where the supplier receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply will be the date of issue of invoice in respect of such excess amount. It is at the option of the Supplier.
Part Payment
Suppose part advance payment is made or invoice issued is for part payment, the supply shall be deemed to have been made to the extent it is covered by the invoice or the part payment. The Time of Supply will not cover the full supply.
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