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    Time of Supply

    Uploaded by

    Tanya Gupta

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    © All Rights Reserved
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    Time of Supply

    Uploaded by

    Tanya Gupta
    22 views23 pages

    Original Title

    TIME OF SUPPLY

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    © © All Rights Reserved

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    22 views23 pages

    Time of Supply

    Uploaded by

    Tanya Gupta

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    TIME OF SUPPLY

    TIME OF SUPPLY (TOS)

     It means the point in time when a supply shall be deemed to have been
    provided.
     In other words, TOS fixes the point in time when the liability to pay tax
    arises.
    TOS for Supply of Goods (Forward
    Charge) {Section 12(2) of CGST Act, 2017}
     Date of invoice

    Or

     Last date of issue of invoice as per Section 31(1) (Removal of goods or Delivery of
    goods)

    Or

     Date of payment received

    Whichever is earlier
    Example
     Mr. X, the supplier, received order on 12th December,2020 for supply of
    machinery to Mr. Y. Mr. Y paid total due amount as advance along with
    the order. The machinery was delivered on 18th January, 2021. What will
    be the TOS if the invoice has been issued on :
    i. 17th January, 2021
    ii. 25th January,2021

    CASE 1 (17th CASE II (25th


    January, 2021) January,2021)
    Date of invoice 17.1.2021 25.1.2021

    Last date of issue of invoice as per 18.1.2021 18.1.2021


    Section 31(1)
    Date of payment received Not Relevant Not Relevant

    TOS 17.1.2021 18.1.2021


    DATE OF DATE OF DATE WHEN DATE OF
    REMOVAL OF ISSUE OF GOODS RECEIPT OF
    GOODS INVOICE BY MADE PAYMENT BY
    THE AVAILABLE THE
    SUPPLIER TO THE SUPPLIER
    RECIPIENT
    1. 15.1.2021 18.1.2021 20.1.2021 28.1.2021

    2. 17.1.2021 16.1.2021 19.1.2021 2.2.2021

    3. 25.1.2021 25.2.2021 18.1.2021 2.1.2021

    What will be the TOS ?


    DATE OF DATE OF DATE WHEN DATE OF TOS
    REMOVAL OF ISSUE OF GOODS RECEIPT OF
    GOODS INVOICE BY MADE PAYMENT BY
    THE AVAILABLE THE
    SUPPLIER TO THE SUPPLIER
    RECIPIENT
    1. 15.1.2021 18.1.2021 20.1.2021 28.1.2021 15.1.2021

    2. 17.1.2021 16.1.2021 19.1.2021 2.2.2021 16.1.2021

    3. 25.1.2021 25.2.2021 28.1.2021 2.1.2021 25.1.2021


    TOS for Supply of Goods (Reverse Charge)
    {Section 12(3) of CGST Act, 2017}
     Date of receipt of goods

    Or

     Date of payment as entered in the books of accounts of the recipient or


    the date on which the payment is debited in his bank account,
    whichever is earlier, or

    Or

     30 days* + date of issue of invoice or any other document

    Whichever is earlier

     *45 days incase of Banking company


    DATE OF DATE OF DATE OF DATE WHEN
    ISSUE OF RECEIPT OF PAYMENT IN PAYMENT IS
    INVOICE GOODS BY THE THE BOOKS DEBITED IN
    RECIPIENT OF BANK
    RECIPIENT ACCOUNT OF
    RECIPIENT
    1 5.1.2021 11.1.2021 16.1.2021 17.1.2021

    2 6.1.2021 10.1.2021 9.1.2021 12.1.2021

    3 7.1.2021 18.1.2021 16.1.2021 15.1.2021

    4 8.1.2021 11.2.2021 13.2.2021 20.2.2021

    What will be the TOS ?


    CASE 1 CASE 2 CASE 3 CASE 4

    A. Date Of Receipt Of 11.1.2021 10.1.2021 18.1.2021 11.2.2021


    Goods

    B. Date Of Payment In 16.1.2021 9.1.2021 16.1.2021 13.2.2021


    The Books Of Recipient

    C. Date When Payment Is 17.1.2021 12.1.2021 15.1.2021 20.2.2021


    Debited In Bank
    Account Of Recipient
    D. 30 days + date of 5.2.2021 6.2.2021 7.2.2021 8.2.2021
    issue of invoice or any
    other document

    TOS 11.1.2021 9.1.2021 15.1.2021 8.2.2021


    TOS for Supply of Goods (Vouchers)
    {Section 12(4) of CGST Act, 2017}
     If goods easily identifiable then date of issue of voucher shall be time of
    supply.
    Eg- Haldiram has opened a new outlet at Laxmi Nagar, Delhi. It has issued a
    voucher for deluxe thali worth Rs. 450 for first 20 customers on 1st march, 2021.
    Now, in that case, the supplier Haldiram will provide specific supply of deluxe
    thali against the voucher. Hence, the supply of this voucher is identifiable. The
    TOS shall be 1.3.2021 i.e. date of issue of voucher
     If goods not identifiable then date of redemption of voucher shall be
    time of supply.
    Eg- The Paschim vihar branch of Easy-Day, a departmental store, has issued
    vouchers worth Rs. 2000, which can be redeemed against purchase of any goods
    available in the store. So, the goods are not identifiable then TOS shall be date
    of redemption.
    TOS for Supply of Services (Forward
    Supply) {Section 13(2) of CGST Act, 2017}
     If invoice issued within 30* days of provisioning of service/completion
    1. Yes - Date of invoice or Date of payment; Whichever is earlier

    2. No – Date of provision of service Or Date of payment; Whichever is earlier

    3. If above two clauses (1 & 2) do not apply; then TOS shall be the date on which the
    recipient shows the receipt of services in his book of account.

    45* days incase of Banking company


    Example –
    The Rama Consultancy services is engaged in providing taxable services.
    It has provided a service to M/S Ruhani enterprises on 19.1.2021, the
    invoice in respect of which was issued on 20.1.2021.
    The payment in this respect was received on 22.1.2021 which was entered
    in the books on the same date.
    The same was credited in the bank account of ‘The Rama Consultancy
    services’ after two days on 24.1.2021.
    EVENT DATE
    1. Date of issue of Invoice (Since it 20.1.2021
    has been issued within 30 days)
    2. Date of entry for receipt of 22.1.2021
    payment
    TOS 20.1.2021
     Example-
    Oriental Bank of Commerce has supplied services on 14.11.2021. The
    payment for the same has been received on 16.11.2021. The invoice was
    issued after 34 days on 18.12.2021.
    EVENT DATE
    1. Date of issue of Invoice (Since it 18.12.2021
    has been issued within 45 days)
    2. Date receipt of payment 16.11.2021
    TOS 16.11.2021
    TOS for Supply of Services (Reverse Charge)
    {Section 13(3) of CGST Act, 2017}
     Date of payment as entered in the books of accounts of the recipient or
    the date on which the payment is debited in his bank account,
    whichever is earlier

    Or

     60 days + date of issue of invoice

    Whichever is earlier
     Bharat, a registered person, has received the supply of services from
    non taxable territory. Accordingly, the tax is liable to be paid by the
    recipient on RCM.

    Event Date
    1. Date of payment as entered in the 2.12.2021
    books of Bharat
    2. Date on which above payment is 5.12.2021
    debited in bank account of Bharat
    3. Date of issue of invoice by supplier of 24.11.2021
    service
    Event Date
    1. Date of payment as entered in the 2.12.2021
    books of Bharat
    2. Date on which above payment is 5.12.2021
    debited in bank account of Bharat
    3. 60 days + Date of issue of invoice 24.1.2021

    The TOS shall be 2.12.2021


    TOS for Supply of Services (Vouchers)
    {Section 13(4) of CGST Act, 2017}
     Same as in the case of Section 12(4) of CGST Act, 2017.
     If goods easily identifiable then date of issue of voucher shall be
    time of supply.
     If goods not identifiable then date of redemption of voucher shall
    be time of supply.
     On 1.1.2018 Wardrobe Dry Cleaners, Vivek Vihar, have issued vouchers
    of Rs. 4,000 to KRVV Limited. The company KRVV Limited distributed
    these vouchers to its employees. The vouchers may be redeemed by the
    employees latest by 28th February by taking dry-cleaning services from
    Wardrobe Dry Cleaners.
     The vouchers are identifiable with a particular supply of dry cleaning
    service. Therefore, the TOS, i.e. the issue of voucher is 1.1.2018.
    Time of Supply in case of change in Rate
    Date of supply of Invoice Date Date of Payment Time of Supply shall Applicable Rate
    goods/service is be

    Before the change in After change After change Earlier of payment date or New Rate
    rate of tax. Invoice Date

    Before change After change Invoice Date Old Rate

    After Change Before change Date of receipt of payment Old rate

    After the change in rate Before change After change Date of payment New Rate
    of tax.
    Before change Before change Invoice Date Old Rate

    Or

    Payment received date

    Whichever is earlier

    After Change Before change Invoice Date New Rate


    Determine the TOS in the following cases assuming
    that rate of GST changes from 28% to 18% w.e.f.
    June 1

    DATE OF SUPPLY DATE OF ISSUE OF DATE OF RECEIPT


    OF GOODS OR INVOICE OF PAYMENT
    SERVICES
    1. May 28 June 9 July 25

    2. May 28 May 28 July 25

    3. May 28 June 9 May 26

    4. June 10 May 28 June 25

    5. June 10 May 28 May 16

    6. June 10 June 9 May 28


    DATE OF DATE OF DATE OF TOS APPLICA
    SUPPLY OF ISSUE OF RECEIPT BLE RATE
    GOODS OR INVOICE OF
    SERVICES PAYMENT

    1. May 28 June 9 July 25 June 9 18%

    2. May 28 May 28 July 25 May 28 28%

    3. May 28 June 9 May 26 May 26 28%

    4. June 10 May 28 June 25 June 25 18%

    5. June 10 May 28 May 16 May 16 28%

    6. June 10 June 9 May 28 June 9 18%

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