{"id":3992,"date":"2020-03-22T09:23:00","date_gmt":"2020-03-22T09:23:00","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3992"},"modified":"2020-03-22T09:23:00","modified_gmt":"2020-03-22T09:23:00","slug":"time-of-supply","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/time-of-supply\/","title":{"rendered":"TIME OF SUPPLY"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/time-of-supply\/#TIME_OF_SUPPLY\" title=\"TIME\nOF SUPPLY\">TIME\nOF SUPPLY<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/time-of-supply\/#TIME_OF_SUPPLY_OF_GOODS\" title=\"TIME OF SUPPLY OF GOODS\">TIME OF SUPPLY OF GOODS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/time-of-supply\/#TIME_OF_SUPPLY_FOR_SERVICES\" title=\"TIME OF SUPPLY FOR SERVICES\">TIME OF SUPPLY FOR SERVICES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/time-of-supply\/#TIME_OF_SUPPLY_UNDER_REVERSE_CHARGE\" title=\"TIME OF SUPPLY UNDER REVERSE CHARGE\">TIME OF SUPPLY UNDER REVERSE CHARGE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/time-of-supply\/#TIME_OF_SUPPLY_FOR_VOUCHERS\" title=\"TIME OF SUPPLY FOR VOUCHERS\">TIME OF SUPPLY FOR VOUCHERS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/time-of-supply\/#OTHER_TYPES_OF_SUPPLY\" title=\"OTHER TYPES OF SUPPLY\">OTHER TYPES OF SUPPLY<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"time-of-supply\"><span class=\"ez-toc-section\" id=\"TIME_OF_SUPPLY\"><\/span><strong>TIME\nOF SUPPLY<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Time of supply means the point in time when\ngoods\/services are considered supplied\u2019. When the seller knows the \u2018time\u2019, it\nhelps him identify due date for payment of taxes.<\/p>\n\n\n\n<p><a href=\"https:\/\/commerceiets.com\/cgst\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"CGST (opens in a new tab)\">CGST<\/a>\/<a href=\"https:\/\/commerceiets.com\/sgst\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"SGST (opens in a new tab)\">SGST<\/a> or <a href=\"https:\/\/commerceiets.com\/what-is-igst\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"IGST (opens in a new tab)\">IGST<\/a> must be paid at the time of supply. <\/p>\n\n\n\n<p>The rules mentioned under GST Act regarding time of <a href=\"https:\/\/commerceiets.com\/taxable-supply\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"supply (opens in a new tab)\">supply<\/a> are as follows:<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"time-of-supply-of-goods\"><span class=\"ez-toc-section\" id=\"TIME_OF_SUPPLY_OF_GOODS\"><\/span><strong>TIME OF SUPPLY OF GOODS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Time of supply of goods&nbsp;is earliest of:<\/p>\n\n\n\n<p>1. Date of issue of invoice.<\/p>\n\n\n\n<p>2. Last date on which invoice should have been issued.<\/p>\n\n\n\n<p>3. Date of receipt of advance\/ payment*.<\/p>\n\n\n\n<p><strong>For example:<\/strong><\/p>\n\n\n\n<p>Mr. X sold goods to Mr. Y worth Rs 1,00,000.\nThe invoice was issued on 15th January. The payment was received on 31st\nJanuary. The goods were supplied on 20th January.<\/p>\n\n\n\n<p>Time of supplies is earliest of \u2013<\/p>\n\n\n\n<p>1. Date of issue of invoice =&nbsp;<strong>15th\nJanuary<\/strong><\/p>\n\n\n\n<p>2. Last date on which invoice should have\nbeen issued = 20th January<\/p>\n\n\n\n<p>Thus the time of supply is 15th January.<\/p>\n\n\n\n<p>If an advance of Rs 50,000 is received by Mr.\nX on 1st January?<\/p>\n\n\n\n<p>The time of supply for the advance of Rs\n50,000 will be 1st January (since the date of receipt of advance is before the\ninvoice is issued). For the balance Rs 50,000, the time of supply will be 15th\nJanuary.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"time-of-supply-for-services\"><span class=\"ez-toc-section\" id=\"TIME_OF_SUPPLY_FOR_SERVICES\"><\/span><strong>TIME OF SUPPLY FOR SERVICES<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Time of supplies of services&nbsp;is earliest of:<\/p>\n\n\n\n<p>1. Date of issue of invoice<\/p>\n\n\n\n<p>2. Date of receipt of advance\/ payment.<\/p>\n\n\n\n<p>3. Date of provision of services (if invoice\nis not issued within prescribed period)<\/p>\n\n\n\n<p><strong>Example:<\/strong><\/p>\n\n\n\n<p>Mr. A provides services worth Rs 20000 to Mr.\nB on 1st January. The invoice was issued on 20th January and the payment for\nthe same was received on 1st February.<\/p>\n\n\n\n<p>Firstly check if the invoice was issued\nwithin the prescribed time or not. The prescribed time is 30 days from the date\nof supply i.e. 31st January. The invoice was issued on 20th January. This means\nthat the invoice was issued within a prescribed time limit.<\/p>\n\n\n\n<p>The time of supplies will be earliest of \u2013<\/p>\n\n\n\n<p>1. Date of issue of invoice =&nbsp;<strong>20th\nJanuary<\/strong><\/p>\n\n\n\n<p>2. Date of payment = 1st February<\/p>\n\n\n\n<p>This means that the time of supplies of services will be 20th January.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"time-of-supply-under-reverse-charge\"><span class=\"ez-toc-section\" id=\"TIME_OF_SUPPLY_UNDER_REVERSE_CHARGE\"><\/span><strong>TIME OF SUPPLY UNDER REVERSE CHARGE<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In case of reverse charge the time of supply\nfor service receiver is earliest of:<\/p>\n\n\n\n<p>1. Date of payment.<\/p>\n\n\n\n<p>2. 30 days from date of issue of invoice for\ngoods (60 days for services)<\/p>\n\n\n\n<p><strong>For example:<\/strong><\/p>\n\n\n\n<p>M\/s ABC Pvt. Ltd undertook service of a\ndirector Mr. X worth Rs. 50,000 on 15th January. The invoice was raised on 1st\nFebruary. M\/s ABC Pvt Ltd made the payment on 1st May.<\/p>\n\n\n\n<p>The time of supply, in this case, will be\nearliest of \u2013<\/p>\n\n\n\n<p>1. Date of payment = 1st May<\/p>\n\n\n\n<p>2. 60 days from date of date of invoice =<strong>&nbsp;2nd\nApril<\/strong><\/p>\n\n\n\n<p>Thus, the time of supply of services is 2nd\nApril.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"time-of-supply-for-vouchers\"><span class=\"ez-toc-section\" id=\"TIME_OF_SUPPLY_FOR_VOUCHERS\"><\/span><strong>TIME OF SUPPLY FOR VOUCHERS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Vouchers are an instrument where there is an obligation\nto accept:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>It as consideration<\/li><li>Part consideration for a supply of goods or services<\/li><\/ul>\n\n\n\n<p>For vouchers, the time of supplies is the date of issue of voucher, if the supply is identifiable at that point. Else, the time of supplies for vouchers is the date of redemption of voucher.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"other-types-of-supply\"><span class=\"ez-toc-section\" id=\"OTHER_TYPES_OF_SUPPLY\"><\/span><strong>OTHER TYPES OF SUPPLY<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In case, it is not possible to determine the time of\nsupply under any of the methods mentioned above, the time of supply would be\ndetermined as under:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>In a case where a periodical return has to be filed, the date on which such return is to be filed.<\/li><li>In any other case, be the date on which the tax is paid.<\/li><\/ul>\n\n\n\n<p><strong>Time of\nSupply for Interest, Late fee or Penalty<\/strong><\/p>\n\n\n\n<p>The time of supply for any interest, late fee\nor penalty for delayed payment as an addition consideration for the supplies\nmade, is the date on which the supplier receives such addition in value.<\/p>\n\n\n\n<p><strong>Time of\nSupply in case Change in rate of tax<\/strong><strong><\/strong><\/p>\n\n\n\n<p>When there is a change in rate of tax, the\ntime of supply shall be determined in the following manner:<\/p>\n\n\n\n<p><em><strong>1. Supply is made before the change in rate of tax<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Invoice is issued and payment is also\nreceived after the change in rate of tax \u2013 the time of supply will be the date\nof invoice or the date of payment \u2013 whichever is earlier.<\/li><li>Invoice is issued before the change in rate\nof tax and payment is received after the change in rate of tax \u2013 the time of\nsupply will be the date of invoice.<\/li><li>Payment is received before the change in rate\nof tax and the invoice is issued after the change in rate of tax \u2013 the time of\nsupply will be the date of receipt of payment.<\/li><\/ul>\n\n\n\n<p><em><strong>2. Supply is made after the change in rate of tax<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Payment is received after the change in rate\nof tax but the invoice is issued before the change in rate of tax \u2013 the time of\nsupply will be date of receipt of payment.<\/li><li>Invoice is issued and payment is also\nreceived before the change in rate of tax \u2013 the time of supply shall be the\ndate of receipt of payment or data of invoice \u2013 whichever is earlier.<\/li><li>Invoice is issued after the change in rate of\ntax but the payment is received before the change in rate of tax \u2013 the time of\nsupply shall be date of invoice.<\/li><\/ul>\n\n\n\n<p><strong>JOIN THE CHANNEL ON TELEGRAM<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/t.me\/commerceiets\" target=\"_blank\">https:\/\/t.me\/commerceiets<\/a><\/p>\n\n\n\n<p><strong>CONNECT ON LINKEDIN<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/<\/a><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/features-of-gst\/\">GST and its features<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/history-of-gst\/\">History of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/advantages-of-gst-in-india\/\">Advantages of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/disadvantages-of-gst\/\">Disadvantages of GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/constitutional-aspect-of-gst\/\">Constitutional aspects of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/liability-of-tax-payer\/\">Liability of tax payer<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives-of-gst\/\">Objectives of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/what-is-igst\/\">IGST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cgst\/\">CGST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-council\/\">GST Council<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/utgst-full-form\/\">UTGST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/sgst\/\">SGST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/levy-and-collection-of-gst\/\">Levy and collection of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/composition-levy\/\">Composition Levy<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/online-gst-registration\/\">Online GST Registration<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/exemptions-under-gst\/\">Exemptions under GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/reverse-charge-in-gst\/\">Reverse Charge in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/taxable-supply\/\">Taxable supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/time-of-supply\/\">Time of supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/value-of-supply\/\">Value of supply<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/place-of-supply\/\">Place of supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/inter-state-supply\/\">Inter-state supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/intra-state-supply\/\">Intra-state supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/what-is-composite-supply\/\">Composite supply<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/mixed-supply\/\">Mixed supply&nbsp;<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/composite-and-mixed-supply\/\">Composite and mixed supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/online-payment-of-gst\/\">Online payment of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/how-to-claim-tcs-in-gst\/\">How to Claim TCS in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/how-to-claim-tds-in-gst\/\">How to claim TDS in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/input-tax-credit-under-gst\/\">Input tax credit under GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/tax-invoice-under-gst\/\">Tax Invoice<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/debit-note\/\">Debit Note in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/credit-note\/\">Credit Note in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revised-invoice-in-gst\/\">Revised Invoice in GST<\/a><\/td><td><a href=\"http:\/\/v\" target=\"_blank\">Supplementary Invoice<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/e-way-bill-in-gst\/\">E-Way bill in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/gst-returns\/\">GST Returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/goods-and-service-tax-network\/\">GSTN (Goods and Service Tax Network)<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-suvidha-provider\/\">GST Suvidha Provider<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-portal\/\">GST Portal<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>TIME OF SUPPLY Time of supply means the point in time when goods\/services are considered supplied\u2019. When the seller knows the \u2018time\u2019, it helps him identify due date for payment of taxes. CGST\/SGST or IGST must be paid at the time of supply. The rules mentioned under GST Act regarding time of supply are as&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/time-of-supply\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;TIME OF SUPPLY&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3993,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[229],"tags":[],"class_list":["post-3992","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-goods-and-service-tax"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3992"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3992\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3993"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}