Time of Supply explained with Examples - GST

Time of supply provisions for goods is contained in Chapter IV of GST Act, 2017, sections 12 to 14.  I am not going to repeat the provisions in the act verbatim, but explain the provisions of Time of Supply through examples

Example 1

1. Invoice is raised on 01.08.2017
2. Goods are moved from factory / warehouse on 28.07.2017
3. Payment for goods credited in bank and accounted on 28.08.2017

Time of supply is point 2 which is 28.07.2017 as per section 31(1)

Example 2

1. Invoice is raised on 01.08.2017
2. Goods are moved from factory / warehouse on 28.07.2017
3. Payment for goods accounted in books on 28.08.2017
4. Payment for goods credited in bank account on 15.07.2017

Time of supply is point 4 which is 15.07.2017 as per section 12(2)(b) Explanation 2

Example 3

1. Supplier prepared delivery challan and kept the goods ready at his warehouse on 14.07.2017 for ex-works delivery
2. Goods are moved from factory / warehouse on 18.08.2017 by customer using his truck
3. Invoice is raised on 31.07.2017
4. Payment for goods accounted in books on 28.08.2017
5. Payment for goods credited in bank account on 15.07.2017

Time of supply is point 1 which is 14.07.2017 as per section 31(1)(b)

Example 4

When tax on goods is to be paid on reverse charge basis (mainly for unregistered suppliers)

1. Goods received on 31.08.2017
2. Payment made on 15.09.2017
3. Supplier issues invoice on 15.07.2017

Time of supply is point number 3 + 30 days (ie) 15.08.2017 as per section 12(3)(c)

Example 5

When tax on goods is to be paid on reverse charge basis (mainly for unregistered suppliers)

1. Goods received on 31.08.2017
2. Payment debited in our account on 15.07.2017
3. Payment  account in our books on 31.08.2017
4. Supplier issues invoice on 15.07.2017

Time of supply is point number 2 (ie) 15.07.2017 as per section 12(3)(b)

Example 6

When tax on goods is to be paid on reverse charge basis (mainly for unregistered suppliers)

1. Goods received on -  if not known
2. Payment debited in our account on – if not known
3. Payment  account in our books on – if not known
4. Supplier issues invoice on – if not known
5. Receipt of goods accounted in books on 28.08.2017

Time of supply is point number 5 (ie) 28.08.2017 as per section 13

Example 7

When tax on services is to be paid on reverse charge basis

1. Payment for services made recorded in books on 15.09.2017
2. Payment of services debited in bank account on 14.09.2017
3. Supplier issues invoice on 14.07.2017

Time of supply is point number 3 + 60 days (ie) 14.09.2017 as per section 13(3)(b)

Example 8

When tax on services is to be paid on reverse charge basis

1. Payment for services made recorded in books on 15.08.2017
2. Payment of services debited in bank account on 14.08.2017
3. Supplier issues invoice on 14.07.2017

Time of supply is point number 2 (ie) 14.08.2017 as per section 13(3)(a)

Example 9

When tax on services is to be paid on reverse charge basis

1. Payment for services made recorded in books on – if not known
2. Payment of services debited in bank account on – if not known
3. Supplier issues invoice on – if not known
4. Services accounted in our books on 15.10.2017

Time of supply is point number 4 (ie) 15.10.2017 as per section 13(3)

Example 10

If services received from overseas associated enterprises

1. Entry of service in books – 31.08.2017
2. Payment for these services – 28.08.2017

Time  of supply is pint number 2 as per section 13(3)