Time of supply of goods and services under Indian Tax

Term Time of supply of goods and services under Indian Tax

 

This post explains about Time of supply of goods and services under Indian Tax.

Time of supply of goods

  1. The liability to pay tax on goods shall arise at the time of supply, as determined in accordance with the provisions of this section.
  2. The time of supply of goods shall be the earlier of the following dates,   namely:—
    1. the date of issue of invoice by the supplier or the last date on  which  he  is required, under sub-section (1) of section 31, to issue the invoice with respect to the supply; or
    2. the date on which the supplier receives the payment with respect to the  supply:

Provided that where the supplier of taxable goods receives an amount upto  one  thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of 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 on which the supplier receives the payment” shall be 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, whichever    is earlier.

  1. In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earliest of the following dates,  namely:—
    1. The date of the receipt of goods;  or
    2. 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
    3. The date immediately following thirty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the  supplier:
    4. Provided that where it is not possible to determine the time of supply under clause (a)     or clause (b) or clause (c), the time of supply shall be the date of entry in the books of account of the recipient of supply.
    5. In case of supply of vouchers by a supplier, the time of supply shall   be—
      1. The date of issue of voucher, if the supply is identifiable at that point;   or
      2. The date of redemption of voucher, in all other cases.
      3. Where it is not possible to determine the time of supply under the provisions of sub- section (2) or sub-section (3) or sub-section (4), the time of supply  shall––
        1. in a case where a periodical return has to be filed, be the date on which such  return is to be filed; or
        2. in any other case, be the date on which the tax is paid.
        3. The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.

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