Time of supply means the point in time when goods or services are considered as supplied. The liability to pay tax on goods or services shall arise at the time of supply.
Section 12 of the CGST Act, 2017 covers time of supply in GST of goods, whereas section 13 covers time of supply of services.
In this blog, we will understand the time of supply of goods & to know the Place of supply in GST click here.
Time of supply of goods for Forward charge
Time of supply of goods is earliest of the following dates:
- Date of issue of invoice
- Last date on which invoice should have been issued
- Date of receipt of advance/ payment
Notes:
- As per Notification No. 66/2017-Central Tax dated 15th November, 2017, GST is not applicable at the time of advance received for goods. Therefore, time of supply for goods is earlier than the date of tax invoice or last date on which tax invoice should be issued.
- Time limit for issuing a tax invoice is 30 days from removal or delivery of goods. Therefore, if a tax invoice is issued beyond 30 days, time of supply will be such 30th day from removal of goods.
Below chart explains time of supply for goods with the help of some examples
Time of supply of goods for Reverse charge
In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earliest of the following dates:-
- the date of the receipt of goods
- earliest of :
- the date of payment as entered in the books of account of the recipient
- the date on which the payment is debited in his bank account
- 30 days from the date of issue of invoice by the supplier
However, if the above dates are not determinable, time of supply is the date of entry in the books of account of the recipient of supply.
Below chart explains time of supply for goods with the help of some examples:
Conclusion
Determination of time of supply is very important for knowing when to pay the GST. If one fails to determine time of supply correctly, it may attract levy of interest due to late payment of GST.
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The application for surrender of registration in GST will be filed in form GST REG-16 on the GST portal.
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