Time of Supply for GST

Under GST, liability to remit

GST to Government arises at the time of supply. Time of supply is generally the earliest of one of the three events, namely receiving payment, issuance of invoice or completion of supply. However, in some circumstances, the time of supply could be different based on the nature of the transaction. In this article, we look at GST time of supply for goods, services and reverse charge transactions.

Time of Supply for Goods

Time of supply for goods is the earlier of the following:

The date of issue of invoice by the Supplier; or
The last date on which the taxpayer should issue the invoice with respect to the supply; or
The date on which the Supplier receives the payment with respect to the supply.

Time of Supply for Services

Time of supply for services is the earlier of the following:

Date of issue of Invoice by the Supplier: if the Supplier issues the invoice within 30 days of providing service or the date of receipt of payment, whichever is earlier; or
The date of provision of service, if the Supplier fails to provide the invoice within 30 days of providing service or the date of receipt of payment, whichever is earlier; or
The date on which the recipient shows the receipt of services in his books of account.

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Time of Supply for Reverse Charge

In case of supplies for which tax is paid on a reverse charge basis, the time of supply shall be the earliest of the following dates:

Date of Receipt of Goods (in case of Supply of Goods); or
The date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or
The date immediately following:
- For Supply of Goods 30 days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the Supplier
- For Supply of Services 60 days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the Supplier: Note:

When it is not possible to determine the time of supply as per above, the time of supply shall be the date of entry in the books of account of the recipient of the supply.

Time of Supply for Vouchers

Vouchers are an instrument where there is an obligation to accept:

It as consideration
Part consideration for a supply of goods or services

And, where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the voucher itself or in related documentation, including the terms and conditions of use of such instrument. Example for vouchers could he

Sodexo. For vouchers, the time of supply is the date of issue of voucher, if the supply is identifiable at that point. Else, the time of supply for vouchers is the date of redemption of voucher.

Other Types of Supply

In case, it is not possible to determine the time of supply under any of the methods mentioned above, the time of supply would be determined as under:

In a case where a periodical return has to be filed, the date on which such return is to be filed.
In any other case, be the date on which the tax is paid.

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Frequently Asked Questions

Common questions about GST Time of Supply Regulations for Goods and Services.

The time of supply for goods is the earlier of the following: the date of issue of invoice by the supplier, the last date on which the taxpayer should issue the invoice with respect to the supply, or the date on which the supplier receives the payment with respect to the supply.

The time of supply for services is the earlier of the following: the date of issue of invoice by the supplier (if issued within 30 days of providing service or the date of receipt of payment, whichever is earlier), the date of provision of service (if the supplier fails to provide the invoice within 30 days of providing service or the date of receipt of payment, whichever is earlier), or the date on which the recipient shows the receipt of services in their books of account.

For supplies where tax is paid on a reverse charge basis, the time of supply shall be the earliest of the following dates: the date of receipt of goods (in case of supply of goods), the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in their bank account (whichever is earlier), or the date immediately following 30 days from the date of issue of invoice or any other document by the supplier (for supply of goods) or 60 days from the date of issue of invoice or any other document by the supplier (for supply of services).

For vouchers, the time of supply is the date of issue of the voucher if the supply is identifiable at that point. If not, the time of supply for vouchers is the date of redemption of the voucher.

In cases where it is not possible to determine the time of supply under any of the methods mentioned above, the time of supply would be determined as follows: in a case where a periodical return has to be filed, the date on which such return is to be filed; in any other case, the date on which the tax is paid.

No, the time of supply for goods and services is determined differently under GST. For goods, it is based on the earlier of the date of issue of invoice, the last date on which the taxpayer should issue the invoice, or the date of receipt of payment. For services, it is based on the earlier of the date of issue of invoice (within 30 days of providing service or the date of receipt of payment), the date of provision of service (if invoice is not issued within 30 days), or the date on which the recipient shows the receipt of services in their books of account.

For vouchers, the time of supply is the date of issue of the voucher if the supply is identifiable at that point. If the supply is not identifiable at the time of issue of the voucher, the time of supply is the date of redemption of the voucher.

The time of supply is crucial under GST as it determines the liability to remit GST to the government. The time of supply is generally the earliest of one of three events: receiving payment, issuance of invoice, or completion of supply. However, in some circumstances, the time of supply could be different based on the nature of the transaction.

For reverse charge transactions involving goods, the time of supply is the earliest of the date of receipt of goods, the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in their bank account (whichever is earlier), or the date immediately following 30 days from the date of issue of invoice or any other document by the supplier.

If it is not possible to determine the time of supply using the prescribed methods, the time of supply will be determined as follows: in a case where a periodical return has to be filed, the date on which such return is to be filed; in any other case, the date on which the tax is paid.