GST-Time of Supply-FAQ’s on GST by CBEC

By | September 23, 2016
(Last Updated On: September 23, 2016)

GST-Time of Supply

FAQ’s on GST by CBEC

(Note MGL = Model GST Law)

Q 1. What is time of supply?

Ans. The time of supply fixes the point when the liability to charge GST arises. It also indicates when a supply is deemed to have been made. The MGL provides separate time of supply for goods and services.

Q 2. When does the liability to charge GST arise in respect of supply of goods?

Ans. Section 12 of the MGL provides for time of supply of goods. The time of supply of goods shall be the earliest of the following namely,

(i) the date on which the goods are removed by the supplier, where the supply of goods require removal; or

(ii) the date on which the goods are made available where the supply does not require removal; or

(iii) the date on which the supplier issues invoices with respect to the supply where the above two situations do not apply; or

(iv) the date on which the recipient shows the receipt of the goods in his books of accounts.

Q 3. What is time of supply of continuous supply of goods?

Ans. The time of supply of continuous supply of goods is;

a) where successive statements of accounts or successive payments are involved, the date of expiry of the period to which such successive statements of accounts or successive payments relate.

b) where there are no successive statements of account or successive payments involved, the date of issue of the invoice or the date of receipt of payment whichever is earlier

Q 4. What is time of supply of goods sent on approval basis?

Ans. In case of supply on approval basis, the time of supply shall be the time at which it is known whether a supply will take place or six months from the date of supply, whichever is earlier.

Q 5. Where it is not possible to determine the time of supply in terms of sub-section 2, 3, 5 or 6 of Section 12 or that of Section 13 of MGL, how will time of supply be determined?

Ans. There is a residual entry in Section 12(7) as well as 13 (7) which say that if periodical return has to be filed, then the due date of filing of such periodical return shall be the time of supply. In other cases, it will be the date on which the CGST/SGST/IGST is paid

Q 6. When does the liability to pay GST arise in respect of supply of services?

Ans. Unlike goods, in the case of services, the time of supply is determined by the fact whether the invoice for supply of services has been issued within the prescribed period or beyond such prescribed period.

Q 7. What is time of supply of service when invoice is not issued within prescribed period?

Ans. The time of supply of service in such cases shall be the earliest of the following:

(i) date completion of the provision of service; or

(ii) the date of receipt of payment.

Q 8. What is time of supply of service when invoice is issued within prescribed period?

Ans. The time of supply of service in such cases shall be the earliest of the following:

(i) date of issue of invoice; or

(ii) the date of receipt of payment.

Q 9. What does “date of receipt of payment” mean?

Ans. It is the earliest of the date on which the payment is entered in the books of accounts of the supplier or the date on which the payment is credited to his bank account.

Q 10. Suppose, invoice is not issued and date of payment or date of completion of provision of service are also not ascertainable, what will be the time of supply?

Ans. The time of supply shall be the date on which the recipient shows the receipt of services in his books of accounts.

Q 11. Suppose part advance payment is made or invoice issued is for part payment, whether the time of supply will cover the full supply?

Ans. No. The supply shall be deemed to have been made to the extent it is covered by the invoice or the part payment.

Q 12. What is time of supply of service in case of tax payable under reverse charge?

Ans. The time of supply will be the earliest of the following dates:

a) date of receipt of services;

b) date on which payment is made;

c) date of receipt of invoice;

d) date of debit in the books of accounts by supplier.

Q 13. What will be the time of supply in continuous supply of services?

Ans. The time of supply shall be the due date of payment, if ascertainable from the contract. If not ascertainable, it will be earliest of date of receipt of payment or the date of issue of invoice or completion of event where payment is linked to completion of event.

Q 14. Let’s say there was increase in tax rate from 18% to 20% w.e.f. 1.6.2017. What is the tax rate applicable when services provided and invoice issued before change in rate in April 2017, but payment received after change in rate in June 2017?

Ans. The old rate of 18% shall be applicable as services are provided prior to 1.6.2017

Read/Download

  1. Complete FAQ’s on GST by CBEC
  2. Model GST Law

All About GST – A Complete Guide to Model GST Law (3rd Edition, August 2016)

All About GST - A Complete Guide to Model GST Law (3rd Edition, August 2016)

BUY

Direct Taxes Ready Reckoner Service Tax Ready Reckoner Company Law Ready Reckoner tax deduction at source
New Books Released on Tax , GST and law

25 thoughts on “GST-Time of Supply-FAQ’s on GST by CBEC

  1. Pingback: GST Refunds – Analysis of Draft Rules released by Govt of India | Tax Heal

  2. Pingback: GST Composition Scheme for Small Businessmen : Analysis | Tax Heal

  3. Pingback: GST Council falters on service tax control | Tax Heal

  4. Pingback: 26 Forms- Registration of GST in India | Tax Heal

  5. Pingback: 7 Forms for GST Payment under GST of India | Tax Heal

  6. Pingback: GST Tax Invoice of India : Analysis | Tax Heal

  7. Pingback: Download GSTR 1-Outward Supplies Made by the Taxpayer | Tax Heal

  8. Pingback: GST Return filing Process in India- Inforgraphic Presentation | Tax Heal

  9. Pingback: GST Returns : Who … What….When…How ..Explained | Tax Heal

  10. Pingback: GST Registration Checklist for Input Service Distributor | Tax Heal

  11. Pingback: Video GST Registration in India | Tax Heal

  12. Pingback: Compulsory Registration under GST – 11 types | Tax Heal

  13. Pingback: Flow Chart of Input Tax Credit Mismatch under GST must for every Purchaser to undestand | Tax Heal

  14. Pingback: Flow Chart GST e-Registers : e-Tax liability, e-Cash Ledger,e-Credit Register | Tax Heal

  15. Pingback: Download GST Refund Formats -GST RFD 01 to GST RFD 10 | Tax Heal

  16. Pingback: Analysis GSTR-7 TDS Return | Tax Heal

  17. Pingback: Analysis GSTR-9 Annual Return | Tax Heal

  18. Pingback: Time of Supply under GST- Analysis | Tax Heal

  19. Pingback: GST Registration (India)- Instruction for filling Application for New Registration | Tax Heal

  20. Pingback: GST Registration (India): Examples and Analysis | Tax Heal

  21. Pingback: Taxable Persons under GST (India) : Complete Guide | Tax Heal

  22. Pingback: Flow Chart of GST Registration and Return by New Taxable Person | Tax Heal

  23. Pingback: Info graphics on GST History (India) – 13 years of Long Journey | Tax Heal

  24. Pingback: List of Documents required for GST Migration (India) | Tax Heal

  25. Pingback: What is GST? How does it work?- Answer | Tax Heal

Leave a Reply