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Published on:
February 23, 2023
By
Prerna

Time of Supply | Section 12 to 14 of CGST Act Explained

As per the CGST Act, the time of supply is the point when goods or services are considered to have been supplied or deemed to have been supplied. Sections 12 to 14 of the CGST Act deal with the time of supply. It is important for business owners and startup founders to understand the provisions of these sections to comply with the GST law.

Section 12: Time of supply of goods

Section 12 of the CGST Act specifies the time of supply of goods. It provides that the time of supply of goods shall be:

1. The date of issue of invoice by the supplier or the last date on which the invoice is required to be issued, whichever is earlier; or

2. The date of receipt of payment by the supplier, if the invoice is issued within the prescribed time period; or

3. The date of receipt of goods by the recipient, if the invoice is not issued within the prescribed time period.

It is important to note that the time of supply of goods can be different for different types of supplies. For example, the time of supply for continuous supply of goods shall be the date on which the payment is due or the date of receipt of payment, whichever is earlier.

Section 13: Time of supply of services

Section 13 of the CGST Act specifies the time of supply of services. It provides that the time of supply of services shall be:

1. The date of issue of invoice by the supplier or the last date on which the invoice is required to be issued, whichever is earlier; or

2. The date of receipt of payment by the supplier, if the invoice is issued within the prescribed time period; or

3. The date of completion of the provision of services, if the invoice is not issued within the prescribed time period.

It is important to note that the time of supply of services can be different for different types of supplies. For example, the time of supply for continuous supply of services shall be the date on which the payment is due or the date of receipt of payment, whichever is earlier.

Section 14: Change in rate of tax in respect of supply of goods or services

Section 14 of the CGST Act deals with the change in the rate of tax in respect of supply of goods or services. It provides that the time of supply shall be:

1. The date of issuance of the invoice or the last date on which the invoice is required to be issued, whichever is earlier, if the rate of tax is changed before the issuance of the invoice; or

2. The date of receipt of payment, if the rate of tax is changed after the issuance of the invoice.

It is important to note that the time of supply is a crucial aspect of the GST law. It has a direct impact on the tax liability of the supplier and the recipient of goods or services. Therefore, businesses must comply with the provisions of the CGST Act and ensure that the time of supply is determined correctly.

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Updated on:
March 16, 2024