Time of Supply of Goods is the point in time when a supply of goods is deemed to have taken place for the purposes of GST. The time of supply is important as it determines the point in time when the liability to pay GST arises. Section 12 of the Central Goods and Services Tax Act, 2017 (CGST Act) provides the rules for determining the time of supply of goods. The rules are as follows:
1. Time of supply in case of goods involves three scenarios:
a) Goods are removed for supply to the recipient: In this case, the time of supply is the date on which the goods are removed or made available to the recipient.
b) Goods are supplied by way of delivery: In this case, the time of supply is the date on which the goods are delivered to the recipient or any other person on the direction of the recipient.
c) Goods are supplied on the basis of continuous supply: In this case, the time of supply is the date on which the supplier issues the invoice or the date of receipt of payment, whichever is earlier.
2. When the time of supply cannot be determined as per the above rules, the time of supply will be the date of entry in the books of accounts of the recipient.
3. In case of goods supplied on approval basis, the time of supply will be the date on which the supplier issues the invoice or the date of receipt of payment, whichever is earlier, or the date on which the recipient signifies his acceptance.
4. In case of vouchers, the time of supply will be the date of issue of the voucher or the date of redemption of the voucher, whichever is earlier.
It is important to correctly determine the time of supply of goods as it has an impact on the tax liability of the supplier and recipient of goods. Failure to comply with the time of supply provisions may result in interest and penalties under the GST law.
Under the CGST Act 2017, there are different types of time of supply of goods, which are as follows:
1. Date of issuance of invoice: This is the most common type of time of supply of goods. The date of issuance of invoice by the supplier to the recipient is considered as the time of supply.
2. Date of receipt of payment: In certain cases, the time of supply of goods is the date on which the supplier receives the payment for the goods. This type of time of supply is applicable when the payment is received before the issuance of the invoice.
3. Date of delivery of goods: In case the goods are delivered before the issuance of invoice, the time of supply of goods is the date of delivery of goods.
4. Date of provision of services: When goods are supplied along with services, the time of supply of goods is the same as the time of provision of services.
5. Date of receipt of goods: If the goods are received before the issuance of invoice, the time of supply of goods is the date on which the recipient receives the goods.
6. Date of entry in the books of accounts: If the time of supply of goods cannot be determined by any of the above methods, it is the date on which the transaction is recorded in the books of accounts of the supplier.
It is important to determine the correct time of supply of goods as it is used for calculating the GST liability of the supplier.
The time of supply of goods is a crucial aspect of the Goods and Services Tax (GST) system. It determines the point in time when the liability to pay GST arises. The GST liability is determined based on the time of supply of goods and services.
In case of goods, the time of supply of goods determines the time at which the supplier of the goods is liable to pay GST on the goods supplied. It is the point in time when the transaction is considered to have taken place for the purpose of GST.
The time of supply of goods is relevant for various purposes, including the determination of the tax period for which the tax is payable, the calculation of interest on delayed payment of tax, and the availability of input tax credit.
In summary, the time of supply of goods is a critical aspect of the GST system, and it is essential for taxpayers to understand the relevant provisions and comply with the requirements to avoid any penalties or legal issues.
Q: What is the time of supply of goods under GST?
A: The time of supply of goods is the point in time when the liability to pay tax arises. It is the time at which a transaction is considered to have taken place for the purpose of determining the rate of tax, the due date for filing the return, and the period for which the return is to be filed.
Q: What is the relevance of time of supply of goods in GST?
A: The time of supply of goods is relevant for determining the due date for payment of tax, the amount of tax payable, and the eligibility for input tax credit.
Q: What are the different types of time of supply of goods?
A: The different types of time of supply of goods under GST are as follows:
1. Date of issue of invoice
2. Date of receipt of payment
3. Date of delivery of goods
4. Date of issue of a debit note or a supplementary invoice
Q: What is the time of supply of goods when the invoice is not issued within the prescribed time?
A: In case the invoice is not issued within the prescribed time, the time of supply of goods shall be the date of delivery of goods.
Q: What is the time of supply of goods when the recipient is related to the supplier?
A: In case the recipient is related to the supplier, the time of supply of goods shall be the earlier of the following dates:
1. Date of receipt of goods
2. Date of payment
Q: What is the time of supply of goods when the goods are returned by the recipient?
A: In case the goods are returned by the recipient, the time of supply of goods shall be the date on which the recipient becomes liable to return the goods to the supplier.
Q: What is the time of supply of goods in case of continuous supply of goods?
A: In case of continuous supply of goods, the time of supply of goods shall be the earlier of the following dates:
1. Date of issue of invoice
2. Due date of payment
Q: What is the time of supply of goods in case of goods sent on approval basis?
A: In case of goods sent on approval basis, the time of supply of goods shall be the earlier of the following dates:
1. Six months from the date of sending the goods
2. The date on which the recipient signifies his acceptance of the goods or returns the goods to the supplier.
