Section 12 CGST Act 2017 – Time of supply of goods.

By | April 15, 2017
Print Friendly, PDF & Email
(Last Updated On: May 18, 2018)

Section 12 CGST Act 2017

[ Section 12 CGST Act 2017 Notified w.e.f 01.07.2017 vide Notification No. 9/2017 – Central Tax Dated 28th June, 2017 ]

Section 12 CGST Act 2017 relates to Time of supply of goods and is covered in Chapter IV – Time and Value of Supply

[Note : CGST Act 2017 also known as CENTRAL GOODS AND SERVICES TAX ACT, 2017 assented by the President of India on 12-4-2017 -An Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and the matters connected therewith or incidental thereto. ]

Time of supply of goods.

12. (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:—

(a) 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 [ Note -1 and 2] ; or

(b) 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.

(3) 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:—

(a) the date of the 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 following thirty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier:

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.

(4) 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.

(5) 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—

(a) in a case where a periodical return has to be filed, be the date on which such return is to be filed; or

(b) in any other case, be the date on which the tax is paid.

(6) 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.


Note :-

2 Seeks to exempt all taxpayers (except opting Composition Scheme) from payment of tax on advances received in case of supply of goods vide Notification No 66/2017 Central Tax Dated 15th November, 2017

1 Seeks to make payment of tax on issuance of invoice by registered persons having aggregate turnover less than Rs 1.5 crores vide Notification No 40/2017 Central Tax Dated 13th October, 2017 

If you have any comments about Section 12 of CGST Act 2017 , share below your thoughts:

Related Book on GST Act

Section 12 CGST Act 2017

Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
tax deduction at source

19 thoughts on “Section 12 CGST Act 2017 – Time of supply of goods.

  1. Pingback: CGST Act 2017 - Chapter Wise and Section Wise - Tax Heal

  2. Pingback: Section 14 CGST Act 2017 - Change in rate of tax in respect of supply of goods or services. - Tax Heal

  3. Pingback: Section 142 CGST Act 2017- Miscellaneous transitional provisions. - Tax Heal

  4. Pingback: ICAI Suggestions on GST Rules Submitted to Govt of India - Tax Heal

  5. Pingback: Section 20 UTGST Act 2017- Miscellaneous transitional provisions - Tax Heal

  6. Pingback: GST on Advance Payments of Goods & Services - Analysis - Tax Heal

  7. Pingback: Final GST Determination of Value of Supply Rules Approved by GST Council 18.05.2017 - Tax Heal

  8. Pingback: GST Time of Supply of Goods and Services with Examples - Tax Heal

  9. Pingback: Sections of CGST Act 2017 w.e.f 01.07.2017 - Notification No. 9/2017 – Central Tax Dated 28th June, 2017 - Tax Heal

  10. Pingback: GST payable at time of receipt of advance by mining company - Tax Heal

  11. Pingback: GST on Mining Sector : FAQ - Tax Heal

  12. Pingback: GST RCM : GST Reverse Charge Mechanism : Analysis - Tax Heal

  13. Pingback: ICAI Suggestions on GST Act to Govt : July 2017 - Tax Heal

  14. Pingback: Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee - Tax Heal

  15. Pingback: Deferment of GST levy till Time of Supply : ICAI seeks clarification - Tax Heal

  16. Pingback: GST on Advance Payments : Free Study Material - Tax Heal

  17. Pingback: Valuation in GST : Free Study Material - Tax Heal

  18. Pingback: How Banks will pay GST on Gold (Metal) Loan : CBIC Clarify - Tax Heal

  19. Pingback: GST Audit Checklist : User Guide on GST Audit - Tax Heal

Leave a Reply

Your email address will not be published. Required fields are marked *