Time of supply of Goods under GST

1. Time of supply of goods

The time of supply of goods shall be the earlier of the following dates, namely: —

(a) The date of issue of invoice or the last date on which he is required to issue the invoice u/s 31(1); OR

(b) The date of receipt of payment

At the option of the Supplier Time of supply of goods.

If the supplier receives an amount up to Rs. 1,000/- in excess of the invoice amount, the time of supply for the extra amount shall, at the option of the said supplier, be

● the date of issue of invoice for such excess amount.

Explanation 1. –

For the purposes of clauses (a) and (b), “supply” shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment.

Explanation 2. –

For the purposes of clause (b), “the date of receipt of payment” shall be earlier of the following dates, namely:

• the date on which the payment is entered in his books of account; OR
• the date on which the payment is credited to his bank account

For example:

Mr A sold goods worth of Rs. 100000 on 01^st May 2020. He entered payment in his books of account on 05^th May 2020 while his bank account was credited with the payment on 8^th May 2020. What shall be the Time of Supply in this case?

1. Date of receipt of payment shall be earlier of the following dates:

• • • Date of entry in books of accounts: 5^th May 2020
    • Date on which bank account is credited: 8^th May 2020

So, date of receipt of payment will be: 5^th May 2020

2. While time of supply is earlier of the following dates:

• • • Date of Issue of invoice: 01^st May 2020
    • Date of receipt of Payment: 5^th May 2020

So, time of supply shall be: 1^st May 2020

2. Time of supply (for Goods) under Reverse Charge (RCM)

In case of reverse charge, the time of supply shall be the earliest of the following dates, namely: —

(a) the date of receipt of goods; OR

(b) 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

(c) the date immediately after THIRTY days from the date of issue of invoice by the supplier (60 days for services)

If it is not possible to determine the time of supply under (a), (b) or (c), the time of supply shall be the date of entry in the books of account of the recipient.

Example:

1. 1. Date of receipt of goods: 10^th May 2020
   2. Date of payment entered in books of account: 25^th May 2020 OR Date of payment debited in the bank accounts: 28^th May 2020
   3. Date of invoice 15^th May 2020

So, Time of supply of shall be: 10^th May 2020

If for some reason time of supply could not be determined supply under (a), (b) or (c) then it would be 25^th May 2020 i.e., date of entry

3. Time of supply for Vouchers (for goods)

In case of supply of vouchers by a supplier, the time of supply shall be—

(a) the date of issue of voucher, if the supply is identifiable at that point; OR

(b) the date of redemption of voucher, in all other cases.

4. Time of Supply in all other cases for goods (not covered in any points above)

If it is not possible to determine the time of supply then, time of supply shall be:

1. The date on which periodical return is to be filed
2. In any other case, be the date on which the tax is paid.

5. Time of Supply in cases w.r.t. an addition in the value of supply

If any addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration then time of supply shall be:

1. The date on which the supplier receives such addition in value.