TIME OF SUPPLY :
Time of supply refers the point when liability for goods & services tax arises. In short, it is POINT OF TAXATION. Any commercial transaction either in goods or services passes through various stages i.e. order, invoicing to customer, delivery of goods and receiving consideration for supply. Time of supply will enable to us to figure out at what point, liability to pay GST arises. The time of supply has been separately defined under section 12 for goods and section 13 for services in CGST Act. Further, time of supply is different under forward charge mechanism and reverse charge mechanism. The same can be summarized through following charts.
|TIME OF SUPPLY UNDER REVERSE CHARGE||TIME OF SUPPLY IN CASE OF ASSOCIATED ENTERPRISE IF SUPPLIER OF SERVICES IS LOCATED OUTSIDE INDIA||TIME OF SUPPLY OF VOUCHERS|
|In case of reverse charge, the time of supply shall be earlier of
If time of supply cannot be determined under aforesaid cases, the date of entry in the books of recipient shall be considered.
|In case of ‘associated enterprises’, where the supplier of service is located outside India, the time of supply shall be earlier of –
||In case of supply of vouchers the time of supply is
Date of Payment means the date earlier of
- The date on which the recipient entered the payment in his books
- The date on which the payment is debited from his bank account