{"id":5584,"date":"2019-02-09T11:12:31","date_gmt":"2019-02-09T05:42:31","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=5584"},"modified":"2026-01-06T23:55:14","modified_gmt":"2026-01-06T18:25:14","slug":"gst-time-of-supply","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/gst-time-of-supply\/","title":{"rendered":"Guide on Time of Supply as per Section 12 of CGST Act, 2017"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69ea4cb022b6e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69ea4cb022b6e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#TIME_OF_SUPPLY_UNDER_GST_LAW\" title=\"TIME OF SUPPLY UNDER GST LAW:\">TIME OF SUPPLY UNDER GST LAW:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Guide_on_Time_of_Supply_as_per_Section_12_of_Central_Goods_and_Services_Tax_Act_2017\" title=\"Guide on Time of Supply as per Section 12 of Central Goods and Services Tax Act, 2017\">Guide on Time of Supply as per Section 12 of Central Goods and Services Tax Act, 2017<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Meaning_of_Time_of_Supply\" title=\"Meaning of Time of Supply\">Meaning of Time of Supply<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Why_time_of_supply_important\" title=\"Why time of supply important?\">Why time of supply important?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Section_%E2%80%93_13_Time_of_supply_of_services\" title=\"Section \u2013 13 Time of supply of services\">Section \u2013 13 Time of supply of services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Liability_to_Pay_Tax_%E2%80%93_Section_121\" title=\" Liability to Pay Tax \u2013 Section 12(1)\"> Liability to Pay Tax \u2013 Section 12(1)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Time_of_Supply_under_Forward_Charge_%E2%80%93_Section_122\" title=\" Time of Supply under Forward Charge \u2013 Section 12(2)\"> Time of Supply under Forward Charge \u2013 Section 12(2)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Meaning_of_%E2%80%9CDate_of_Receipt_of_Payment%E2%80%9D\" title=\"Meaning of \u201cDate of Receipt of Payment\u201d\">Meaning of \u201cDate of Receipt of Payment\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Time_Limit_for_Issue_of_Invoice_%E2%80%93_Section_31\" title=\" Time Limit for Issue of Invoice \u2013 Section 31\"> Time Limit for Issue of Invoice \u2013 Section 31<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Advances_on_Supply_of_Goods_%E2%80%93_Notification_662017-CT\" title=\" Advances on Supply of Goods \u2013 Notification 66\/2017-CT\"> Advances on Supply of Goods \u2013 Notification 66\/2017-CT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Excess_Amount_up_to_INR_1000_%E2%80%93_Proviso_to_Section_122\" title=\" Excess Amount up to INR 1,000 \u2013 Proviso to Section 12(2)\"> Excess Amount up to INR 1,000 \u2013 Proviso to Section 12(2)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Supply_Covered_to_the_Extent_of_InvoicePayment\" title=\" Supply Covered to the Extent of Invoice\/Payment\"> Supply Covered to the Extent of Invoice\/Payment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Time_of_Supply_under_Reverse_Charge_%E2%80%93_Section_123\" title=\" Time of Supply under Reverse Charge \u2013 Section 12(3)\"> Time of Supply under Reverse Charge \u2013 Section 12(3)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Time_of_supply_under_reverse_charge\" title=\"Time of supply under reverse charge\">Time of supply under reverse charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Voucher_Provisions_%E2%80%93_Deleted\" title=\" Voucher Provisions \u2013 Deleted\"> Voucher Provisions \u2013 Deleted<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Residual_Cases_%E2%80%93_Section_125\" title=\" Residual Cases \u2013 Section 12(5)\"> Residual Cases \u2013 Section 12(5)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#Interest_Late_Fee_Penalty_%E2%80%93_Section_126\" title=\" Interest, Late Fee, Penalty \u2013 Section 12(6)\"> Interest, Late Fee, Penalty \u2013 Section 12(6)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/gst-time-of-supply\/#When_the_time_of_supply_cannot_be_determined\" title=\"When the time of supply cannot be determined\">When the time of supply cannot be determined<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"TIME_OF_SUPPLY_UNDER_GST_LAW\"><\/span><em><span style=\"text-decoration: underline;\">TIME OF SUPPLY UNDER GST LAW:<\/span><\/em><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/time-of-supply.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8616\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/time-of-supply.png\" alt=\"www.carajput.com; Time of Supply\" width=\"858\" height=\"519\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/time-of-supply.png 400w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/time-of-supply-300x182.png 300w\" sizes=\"(max-width: 858px) 100vw, 858px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Guide_on_Time_of_Supply_as_per_Section_12_of_Central_Goods_and_Services_Tax_Act_2017\"><\/span><span style=\"color: #000080;\"><strong>Guide on Time of Supply as per Section 12 of Central Goods and Services Tax Act, 2017<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000080;\"><strong>Time of Supply of Goods<\/strong><\/span><\/p>\n<ol>\n<li><span style=\"color: #000080;\"><strong> Concept of Time of Supply (TOS) <\/strong><\/span><\/li>\n<\/ol>\n<ul>\n<li>GST is levied at the time of supply of goods or services as prescribed under Section 12 \u2013 Goods &amp; Section 13 \u2013 Services.\u00a0Time of Supply determines the point in time when GST liability arises : Section 12 applies to Forward charge supplies, Reverse charge supplies, Residual cases, Additional consideration (interest, late fee, penalty) <em>(Voucher provisions deleted w.e.f. 01-10-2025). <\/em>These provisions are also applicable to IGST via Section 20 of the integrated goods and services tax.<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Meaning_of_Time_of_Supply\"><\/span><span style=\"text-decoration: underline; color: #000080;\">Meaning of Time of Supply<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Time of supply means the point in time when goods\/services are considered supplied\u2019. When the seller knows the \u2018time\u2019, it helps him identify due date for payment of taxes.\u00a0<a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">CGST\/SGST or IGST<\/a> must be paid at the time of supply. Goods and services have a separate basis to identify their time of supply. <span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">Importance of Time of Supply<\/span><\/strong><\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li>Supply of goods<\/li>\n<li>Supply of services<\/li>\n<li>Reverse charge.<\/li>\n<\/ol>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Why_time_of_supply_important\"><\/span><span style=\"text-decoration: underline; color: #000080;\">Why time of supply important?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong>Time of supply<\/strong>\u00a0means the point in time when goods\/services are considered supplied\u2019. When the seller knows the \u2018time\u2019, it helps him identify due date for payment of taxes.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong><em>Section 12 of Time of Supply of Goods<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>(1)<\/strong> The liability to pay tax on goods shall arise at the time of supply, as determined in accordance with the provisions of this section.<\/p>\n<p style=\"text-align: justify;\"><strong>\u00a0(2)<\/strong> The time of supply of goods shall be the earlier of the following dates, namely:\u2014<\/p>\n<p style=\"text-align: justify;\">\u00a0(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; or<\/p>\n<p style=\"text-align: justify;\">(b) The date on which the supplier receives the payment with respect to the supply:<\/p>\n<p style=\"text-align: justify;\">\u00a0Provided that where the supplier of taxable goods receives an amount up to 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.<\/p>\n<p style=\"text-align: justify;\"><strong>Explanation 1<\/strong>.\u2013\u2013For the purposes of clauses (a) and (b), \u201csupply\u201d shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment.<\/p>\n<p style=\"text-align: justify;\">\u00a0<strong>Explanation 2<\/strong>.\u2013\u2013For the purposes of clause (b), \u201cthe date on which the supplier receives the payment\u201d 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.<\/p>\n<p style=\"text-align: justify;\"><strong>\u00a0(3)<\/strong> In case of supplies in respect of which tax is paid or liable to be paid on \u00a0reverse charge basis, the time of supply shall be the earliest of the following dates, namely:\u2014<\/p>\n<p style=\"text-align: justify;\">\u00a0(a) The date of the receipt of goods; or<\/p>\n<p style=\"text-align: justify;\">\u00a0(b) The date of payment as entered in the books of account of the recipient or\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0the date on which the payment is debited in his bank account, whichever is earlier;<\/p>\n<p style=\"text-align: justify;\">\u00a0(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:<\/p>\n<p style=\"text-align: justify;\">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.<\/p>\n<p style=\"text-align: justify;\"><strong>(4)<\/strong> In case of supply of vouchers by a supplier, the time of supply shall be\u2014<\/p>\n<p style=\"text-align: justify;\">\u00a0(a) The date of issue of voucher, if the supply is identifiable at that point; or<\/p>\n<p style=\"text-align: justify;\">\u00a0(b) The date of redemption of voucher, in all other cases.<\/p>\n<p style=\"text-align: justify;\"><strong>(5)<\/strong> 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\u2013\u2013<\/p>\n<p style=\"text-align: justify;\">\u00a0(a) In a case where a periodical return has to be filed, be the date on which such return is to be filed; or<\/p>\n<p style=\"text-align: justify;\">\u00a0(b) In any other case, be the date on which the tax is paid.<\/p>\n<p style=\"text-align: justify;\"><strong>(6)<\/strong> 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.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Section_%E2%80%93_13_Time_of_supply_of_services\"><\/span><span style=\"color: #000080;\"><strong><em>Section \u2013 13 Time of supply of services<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong>(1)<\/strong> The liability to pay tax on services shall arise at the time of supply, as determined in accordance with the provisions of this section.<\/p>\n<p style=\"text-align: justify;\">\u00a0<strong>(2)<\/strong> The time of supply of services shall be the earliest of the following dates, namely:\u2014<\/p>\n<p style=\"text-align: justify;\">\u00a0(a) The date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or<\/p>\n<p style=\"text-align: justify;\">(b) The date of provision of service, if the invoice is not issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or<\/p>\n<p style=\"text-align: justify;\">\u00a0(c) The date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not apply:<\/p>\n<p style=\"text-align: justify;\">Provided that where the supplier of taxable service receives an amount up to 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 relating to such excess amount.<\/p>\n<p style=\"text-align: justify;\">Explanation.\u2013For the purposes of clauses (a) and (b)\u2013\u2013<\/p>\n<ul style=\"text-align: justify;\">\n<li>The 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;<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">(ii) \u201cThe date of receipt of payment\u201d shall be the date on which the payment is entered in the books of account of the supplier or the date, on which the payment is credited to his bank account, whichever is earlier.<\/p>\n<p style=\"text-align: justify;\"><strong>(3)<\/strong> 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 earlier of the following dates, namely:\u2013\u2013<\/p>\n<p style=\"text-align: justify;\">\u00a0(a) 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<\/p>\n<p style=\"text-align: justify;\">\u00a0(b) The date immediately following sixty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier:<\/p>\n<p style=\"text-align: justify;\">\u00a0Provided that where it is not possible to determine the time of supply under clause (a) or clause (b), the time of supply shall be the date of entry in the books of account of the recipient of supply:<\/p>\n<p style=\"text-align: justify;\">Provided further that in case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier.<\/p>\n<p style=\"text-align: justify;\"><strong>(4)<\/strong> In case of supply of vouchers by a supplier, the time of supply shall be\u2013\u2013<\/p>\n<p style=\"text-align: justify;\">\u00a0(a) The date of issue of voucher, if the supply is identifiable at that point; or<\/p>\n<p style=\"text-align: justify;\">\u00a0(b) The date of redemption of voucher, in all other cases.<\/p>\n<p style=\"text-align: justify;\"><strong>\u00a0(5)<\/strong> 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<\/p>\n<p style=\"text-align: justify;\">(a)\u00a0\u00a0 In a case where a periodical return has to be filed, be the date on which such return is to be filed; or<\/p>\n<p style=\"text-align: justify;\">(b) In any other case, be the date on which the tax is paid.<\/p>\n<p style=\"text-align: justify;\"><strong>\u00a0(6)<\/strong> 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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Liability_to_Pay_Tax_%E2%80%93_Section_121\"><\/span><span style=\"color: #000080;\"><strong> Liability to Pay Tax \u2013 Section 12(1)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>GST liability on goods arises at the time of supply, as determined under Section 12. Time of supply = Point when tax becomes payable<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Time_of_Supply_under_Forward_Charge_%E2%80%93_Section_122\"><\/span><span style=\"color: #000080;\"><strong> Time of Supply under Forward Charge \u2013 Section 12(2)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>General Rule : Time of Supply shall be the earlier of Date of issue of invoice, or Last date on which invoice is required to be issued under Section 31, OR Date of receipt of payment<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Meaning_of_%E2%80%9CDate_of_Receipt_of_Payment%E2%80%9D\"><\/span><span style=\"color: #000080;\"><strong>Meaning of \u201cDate of Receipt of Payment\u201d<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Explanation 2 to Section 12(2): Earlier Date of entry in books of accounts, or Date of credit in bank account<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Time_Limit_for_Issue_of_Invoice_%E2%80%93_Section_31\"><\/span><span style=\"color: #000080;\"><strong> Time Limit for Issue of Invoice \u2013 Section 31<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong>(a) Normal Supply of Goods \u2013 Section 31(1) :<\/strong><\/span><\/p>\n<ul>\n<li>Invoice to be issued Before or at the time of removal (if movement involved), or before or at the time of delivery (if no movement)<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>(b) Continuous Supply of Goods \u2013 Section 31(4)<\/strong><\/span><\/p>\n<ul>\n<li>Invoice to be issued Before or at the time of issuing each statement of account, or before or at the time of receipt of each payment<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>(c) Goods Sent on Approval Basis \u2013 Section 31(7)<\/strong><\/span><\/p>\n<ul>\n<li>Invoice to be issued earlier of Before or at the time of supply, or 6 months from date of removal<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Advances_on_Supply_of_Goods_%E2%80%93_Notification_662017-CT\"><\/span><span style=\"color: #000080;\"><strong> Advances on Supply of Goods \u2013 Notification 66\/2017-CT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Key Relief (w.e.f. 15-11-2017) : GST is NOT payable on advances received for supply of goods, except for Composition dealers &amp; specified actionable claims<\/li>\n<li>Applicable to: All forward charge suppliers of goods<\/li>\n<li>Not applicable to: Services (GST still payable in advance)<\/li>\n<li>Revised Time of Supply for Goods (Post Notification) : Time of Supply = Date of issue of invoice or last date required u\/s 31<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Excess_Amount_up_to_INR_1000_%E2%80%93_Proviso_to_Section_122\"><\/span><span style=\"color: #000080;\"><strong> Excess Amount up to INR 1,000 \u2013 Proviso to Section 12(2)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>If supplier receives up to INR 1,000 excess over invoice value At supplier\u2019s option, Time of Supply for excess may be date of invoice &amp; practically irrelevant after Notification 66\/2017 for goods.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Supply_Covered_to_the_Extent_of_InvoicePayment\"><\/span><span style=\"color: #000080;\"><strong> Supply Covered to the Extent of Invoice\/Payment<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Explanation 1 to Section 12(2) : Supply is deemed made only to the extent covered by Invoice, or Payment However Partial invoice or advance = Time of Supply applies only to that portion.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Time_of_Supply_under_Reverse_Charge_%E2%80%93_Section_123\"><\/span><span style=\"color: #000080;\"><strong> Time of Supply under Reverse Charge \u2013 Section 12(3)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Time of Supply shall be earliest of Date of receipt of goods or Date of payment (earlier of book entry or bank debit) or 30 days from date of supplier\u2019s invoice. Moreover, that Advance payment under RCM triggers GST liability.<\/li>\n<li>If none determinable: Time of Supply = Date of entry in books of recipient <em>(Proviso to Section 12(3))<\/em><\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Time_of_supply_under_reverse_charge\"><\/span><span style=\"text-decoration: underline; color: #000080;\">Time of supply under reverse charge<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Reverse charge means the liability to pay tax is by the recipient of goods\/services instead of the supplier. In case of reverse charge, the time of supply shall be the\u00a0<strong>earliest<\/strong>\u00a0of the following dates\u2014<br \/>\n(a) The date of receipt of goods OR<br \/>\n(b) The date of payment OR<br \/>\n(c) The date immediately after\u00a0<strong>THIRTY<\/strong>\u00a0days from the date of issue of invoice by the supplier (60 days for services)<\/p>\n<p style=\"text-align: justify;\">If it is not possible to determine the time of supply under (a), (b) or (c), the time of supply shall be the\u00a0<strong>date of entry\u00a0<\/strong>in the books of account\u00a0of the\u00a0<strong>recipient.<\/strong><\/p>\n<p style=\"text-align: justify;\">For clause (b) &#8211; the date of payment shall be\u00a0<strong>earlier<\/strong>\u00a0of-<br \/>\n(a) The date on which the recipient entered the payment in his books<br \/>\nOR<br \/>\n(b) The date on which the payment is debited from his bank account<\/p>\n<p style=\"text-align: justify;\">Example:<br \/>\n(a) Date of receipt of goods 10th\u00a0May 2017<br \/>\n(b) Date of payment 10th\u00a0July 2017<br \/>\n(c) Date of invoice 1st\u00a0June 2017<br \/>\n(d) Date of entry in books of receiver 13th\u00a0May 2017<br \/>\nTime of supply of goods 10th\u00a0May 2017<br \/>\nIf for some reason time of supply could not be determined supply under (a), (b), or (c) then it would be 13th May 2017 i.e., date of entry.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Voucher_Provisions_%E2%80%93_Deleted\"><\/span><span style=\"color: #000080;\"><strong> Voucher Provisions \u2013 Deleted<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Voucher-related Time of Supply provisions u\/s 12(4) are deleted w.e.f. 01-10-2025.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Residual_Cases_%E2%80%93_Section_125\"><\/span><span style=\"color: #000080;\"><strong> Residual Cases \u2013 Section 12(5)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>If Time of Supply cannot be determined u\/s 12(2) or 12(3) If return required \u2192 Due date of return, otherwise \u2192 Date of payment of tax<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Interest_Late_Fee_Penalty_%E2%80%93_Section_126\"><\/span><span style=\"color: #000080;\"><strong> Interest, Late Fee, Penalty \u2013 Section 12(6)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Time of Supply for additional consideration due to Interest, Late fee &amp; Penalty. Date of receipt of such additional amount. These amounts form part of taxable value.<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"When_the_time_of_supply_cannot_be_determined\"><\/span><span style=\"text-decoration: underline; color: #000080;\">When the time of supply cannot be determined<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">If it is not possible to determine the time of supply by the above provisions, then it will be-<br \/>\n(a) The date on which a periodical return has to be filed<br \/>\nor<br \/>\n(b) The date on which the CGST\/SGST is paid, in any other case.<\/p>\n<p style=\"text-align: justify;\">In the <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">GST<\/a> regime, the tax collection event will be the earliest of the dates as given above. The various events like issuing invoice\/making payment in case of a supply of goods and services or completion of the event-in case of a supply of service triggering the tax levy confirm that the Government wants to ensure tax is collected at the earliest point of time.<\/p>\n<p style=\"text-align: justify;\">This will be altogether a new concept for the current <a href=\"https:\/\/carajput.com\/services-vat.php\">VAT<\/a> and Central Excise taxpayers.<\/p>\n<p style=\"text-align: justify;\">There are multiple parameters in determining \u2018time\u2019 of supply. Thus, businesses will face a challenge in maintaining and reconciling between revenue as per financials and as per <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">GST<\/a>.<\/p>\n<p><span style=\"color: #000080;\"><strong>You may like a few other posts\u00a0<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/publications\/gst-complainces-calender-nov-2020.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/gst-complainces-calender-nov-2020.pdf\">GST Return compliances calendar- Nov 2020<\/a><\/span><\/li>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/learn\/salient-features-of-new-proposed-gst-system-in-india.html\" data-cke-saved-href=\"https:\/\/carajput.com\/learn\/salient-features-of-new-proposed-gst-system-in-india.html\">SALIENT FEATURES OF NEW GST SYSTEM IN INDIA<\/a><\/span><\/li>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/blog\/key-points-of-42th-gst-council-meeting-headed-by-fm-n-sitharaman\/\" data-cke-saved-href=\"https:\/\/carajput.com\/blog\/key-points-of-42th-gst-council-meeting-headed-by-fm-n-sitharaman\/\">Key points of 42nd GST council Meeting headed By FM N. Sitharaman<\/a><\/span><\/li>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/blog\/gstn-enable-details-to-be-auto-populated-in-e-invoice-into-gstr-1\/\" data-cke-saved-href=\"https:\/\/carajput.com\/blog\/gstn-enable-details-to-be-auto-populated-in-e-invoice-into-gstr-1\/\">GSTN enable auto-populated in the E-invoice information into GST Return -1<\/a><\/span><\/li>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/learn\/delayed-in-payment-of-gst-then-intt-to-be-paid-on-net-gst-liability-from-sep-1-2020.html\" data-cke-saved-href=\"https:\/\/carajput.com\/learn\/delayed-in-payment-of-gst-then-intt-to-be-paid-on-net-gst-liability-from-sep-1-2020.html\">Delayed in payment of GST then Intt to be paid on net GST liability from Sep 1, 2020.<\/a><\/span><\/li>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/publications\/effect-of-gst-on-advertising-and-cinema-induatry.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/effect-of-gst-on-advertising-and-cinema-induatry.pdf\">Effect of GST on Advertisement and Cinema Industry<\/a><\/span><\/li>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/publications\/gst-impact-on-import-and-exports.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/gst-impact-on-import-and-exports.pdf\">GST Impact on Import and Export\u00a0<\/a><\/span><\/li>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/blog\/gst-impact-on-real-estate\/\" data-cke-saved-href=\"https:\/\/carajput.com\/blog\/gst-impact-on-real-estate\/\">GST Impact on Real Estate\u00a0<\/a><\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>TIME OF SUPPLY UNDER GST LAW: Guide on Time of Supply as per Section 12 of Central Goods and Services Tax Act, 2017 Time of Supply of Goods Concept of Time of Supply (TOS) GST is levied at the time of supply of goods or services as prescribed under Section 12 \u2013 Goods &amp; Section &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[5024],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5584"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=5584"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5584\/revisions"}],"predecessor-version":[{"id":6811,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5584\/revisions\/6811"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=5584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=5584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=5584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}