March 18, 2023
Riddhi Thakrar

Understanding the Time of Supply of Goods under GST

In the case of a single-purpose voucher, the date of issuance serves as the time of supply because the supply was observable at the moment the voucher was issued. In contrast, the period of supply is the day on which the coupon is redeemed in all other circumstances.

According to the GST rules, the supplier of goods and services must take into account the time of supply for each transaction. When establishing when a taxpayer is required to pay taxes, it refers to the moment when goods or services are regarded to have been supplied. There is a separate article about time of supply of services; this article focuses on time of supply of commodities.

Normal Charge and its Whereabouts

The earlier of the following dates shall serve as the period of supply of goods:

(a) The invoice's release date (or the last day by which invoice should have been issued)


(b) The day that the money was received.

The time of supply for any amount up to Rs. 1,000 that the provider receives in excess of the invoice amount shall be the day the invoice was issued (at the option of the supplier).

For (a) and (b): To the extent that the supply is covered by the invoice or the payment, it shall be deemed to have been made (as the case may be).

For (b), whichever is earlier, the date of payment receipt.

Reverse Charge and its Whereabouts

Reverse charge refers to a situation in which the beneficiary of the products or services bears the tax burden rather than the supplier. The earliest of the following dates must be used as the time of supply in a reverse charge scenario:

1. The day the products were received; or

2. The payment date

3. The day immediately after TWENTY days from the date the supplier sent the invoice (60 days for services).

The date of entry in the recipient's books of accounts will serve as the time of supply if (a), (b), or (c) cannot be used to determine the time of delivery.

The earlier of: The date the recipient registered the payment in his records OR The date of payment for clause (b)

The day that his bank account is debited for the payment.

Time of Supply for Vouchers

If vouchers are provided, the time of provision is:

1. The voucher's issue date, if the supply can be located at that time.


2. In all other circumstances, the date the coupon is redeemed.

Uncertainty about Time of Supply

The following will be the case if the aforementioned provisions cannot be used to establish the time of supply:

The deadline for filing a periodic return OR, in any other circumstance, the date on which the CGST/SGST is paid.

The earliest of the dates listed above will be the tax collection event under the GST regime. The government's desire to guarantee that tax is collected as soon as possible is confirmed by the numerous events, such as issuing an invoice and making payment in cases of the supply of goods or services or finishing an event and triggering the tax levy in cases of the delivery of services.

The "time" of supply is determined by a number of factors. As a result, businesses still struggle to monitor and reconcile their revenue according to GST and their financial statements.


Four categories are given below to help identify when goods and services will be supplied:

1. Timing of Goods and Services Delivery Under Advance Charge.

2. Timing of Goods and Services Delivery Under Reverse Charge.

3. Timing of Supply in the event that vouchers are supplied.

4. Clause of residue.


GST registration for small firms

Time supply under GST

Tax under employer services