Time, Value, and Place of Taxable Supply under GST

If you are a business owner or a startup founder in India, you must be familiar with GST or Goods and Services Tax. GST has replaced multiple indirect taxes such as excise duty, service tax, and VAT. As per the GST law, taxable supply is a supply of goods or services that are subject to GST. In this article, we will discuss the time, value, and place of taxable supply under GST.

Time of Taxable Supply under GST

The time of taxable supply is the point when the liability to pay GST arises. In simple terms, it is the point when you need to pay GST on your supply of goods or services. There are three scenarios when the time of taxable supply arises:

1. Invoice-based supply : If you issue an invoice within 30 days of the supply of goods or services, the time of taxable supply will be the date of the invoice.

2. Payment-based supply : If you receive the payment within 30 days of the supply of goods or services, the time of taxable supply will be the date of the payment.

3. Other cases : If neither of the above two scenarios applies, the time of taxable supply will be the date of the supply of goods or services.

Value of Taxable Supply under GST

The value of taxable supply is the amount on which GST is calculated. It includes all the costs, expenses, and commissions related to the supply of goods or services. The following elements are included in the value of taxable supply:

1. Price : The amount charged for the supply of goods or services.

2. Taxes : Any taxes, duties, cesses, or fees related to the supply of goods or services.

3. Discounts : Any discounts allowed by the supplier that are shown on the invoice.

4. Subsidies : Any subsidies given by the government that are linked to the supply of goods or services.

Place of Taxable Supply under GST

The place of taxable supply is the place where the supply of goods or services is considered to have taken place. The place of taxable supply is important because it determines whether IGST (Integrated GST), CGST (Central GST), or SGST (State GST) will be levied. There are two types of taxable supplies under GST:

1. Interstate supply : If the supplier and the recipient are in different states, the place of taxable supply will be the location of the recipient.

2. Intrastate supply : If the supplier and the recipient are in the same state, the place of taxable supply will be the location of the supplier.

In conclusion, understanding the time, value, and place of taxable supply is crucial for any business owner or startup founder in India. It helps you determine your GST liability and comply with the GST laws. Ensure that you keep accurate records of your invoices, payments, and other documents related to the supply of goods or services to avoid any penalties or fines.