Time of Supply under GST

Time of Supply under GST

A. Time of Supply of 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 advance/ payment

B. Time of Supply for Services

Time of Supply for Service 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)

C. 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)

Time and Value of Supply

Under GST, 3 types of taxes can be charged in the invoice. SGST and CGST in case of an intra-state transaction and IGST in case of an interstate transaction. But deciding whether a particular transaction is inter or intrastate is not an easy task.

Think about an online training where customers are sitting in different parts of the world.

Say in case, hotel services, where the receiver may have an office in another state and may be visiting the hotel only temporarily, or where goods are sold on a train journey passing through different states.

To help address some of these situations, the IGST act lays down certain rules which define whether a transaction is inter or intrastate. These rules are called the place of supply rules.


Why are time place and value of supply important?

Time of supply means the point in time when goods/services are considered supplied’. When the seller knows the ‘time’, it helps him identify due date for payment of taxes.

Place of supply is required for determining the right tax to be charged on the invoice, whether IGST or CGST/SGST will apply.

Value of supply is important because GST is calculated on the value of the sale. If the value is calculated incorrectly, then the amount of GST charged is also incorrect.


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