Place of Supply of Goods

Sec 10: Place of supply of goods other than supply of goods imported into, or exported
from India

(1) The place of supply of goods, other than supply of goods imported into, or exported
from India, shall be as under:
(a) where the supply involves movement of goods, whether by the supplier or the
recipient or by any other person, the place of supply of such goods shall be the location
of the goods at the time at which the movement of goods terminates for delivery to the
recipient;
(b) where the goods are delivered by the supplier to a recipient or any other
person on the direction of a third person, whether acting as an agent or otherwise, before
or during movement of goods, either by way of transfer of documents of title to the goods
or otherwise, it shall be deemed that the said third person has received the goods and the
place of supply of such goods shall be the principal place of business of such person;
(c) where the supply does not involve movement of goods, whether by the
supplier or the recipient, the place of supply shall be the location of such goods at the
time of the delivery to the recipient;
(d) where the goods are assembled or installed at site, the place of supply shall
be the place of such installation or assembly;
(e) where the goods are supplied on board a conveyance, including a vessel, an
aircraft, a train or a motor vehicle, the place of supply shall be the location at which
such goods are taken on board.
(2) Where the place of supply of goods cannot be determined, the place of supply shall be
determined in such manner as may be prescribed.

Sec 11: Place of supply of goods imported into, or exported from India

The place of supply of goods

(a) imported into India shall be the location of the importer;
(b) exported from India shall be the location outside India.
 Time of Supply

Sec 31: Tax invoice

(1) A registered person supplying taxable goods shall, before or at the time of,
(a) removal of goods for supply to the recipient, where the supply involves movement of
goods; or
(b) delivery of goods or making available thereof to the recipient, in any other case,
issue a tax invoice showing the description, quantity and value of goods, the tax charged
thereon and such other particulars as may be prescribed:
Provided that the Government may, on the recommendations of the Council, by
notification, specify the categories of goods or supplies in respect of which a tax invoice shall be
issued, within such time and in such manner as may be prescribed.
(2) A registered person supplying taxable services shall, before or after the provision of
service but within a prescribed period, issue a tax invoice, showing the description, value, tax
charged thereon and such other particulars as may be prescribed:
Provided that the Government may, on the recommendations of the Council, by
notification and subject to such conditions as may be mentioned therein, specify the categories of
services in respect of which:
(a) any other document issued in relation to the supply shall be deemed to be a tax
invoice; or
(b) tax invoice may not be issued.
(3) Notwithstanding anything contained in sub-sections (1) and (2):
(a) a registered person may, within one month from the date of issuance of certificate of
registration and in such manner as may be prescribed, issue a revised invoice against the invoice
already issued during the period beginning with the effective date of registration till the date of
issuance of certificate of registration to him;
(b) a registered person may not issue a tax invoice if the value of the goods or services
or both supplied is less than two hundred rupees subject to such conditions and in such manner
as may be prescribed;
(c) a registered person supplying exempted goods or services or both or paying tax
under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply
containing such particulars and in such manner as may be prescribed:
Provided that the registered person may not issue a bill of supply if the value of the
goods or services or both supplied is less than two hundred rupees subject to such conditions
and in such manner as may be prescribed;
(d) a registered person shall, on receipt of advance payment with respect to any supply of
goods or services or both, issue a receipt voucher or any other document, containing such
particulars as may be prescribed, evidencing receipt of such payment;
(e) where, on receipt of advance payment with respect to any supply of goods or services
or both the registered person issues a receipt voucher, but subsequently no supply is made and no
tax invoice is issued in pursuance thereof, the said registered person may issue to the person who
had made the payment, a refund voucher against such payment;
(f) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of
section 9 shall issue an invoice in respect of goods or services or both received by him from the
supplier who is not registered on the date of receipt of goods or services or both;
 (g) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of
section 9 shall issue a payment voucher at the time of making payment to the supplier.
(4) In case of continuous supply of goods, where successive statements of accounts or
successive payments are involved, the invoice shall be issued before or at the time each such
statement is issued or, as the case may be, each such payment is received.
(5) Subject to the provisions of clause (d) of sub-section (3), in case of continuous supply of
services,
(a) where the due date of payment is ascertainable from the contract, the invoice shall be
issued on or before the due date of payment;
(b) where the due date of payment is not ascertainable from the contract, the invoice shall
be issued before or at the time when the supplier of service receives the payment;
(c) where the payment is linked to the completion of an event, the invoice shall be issued
on or before the date of completion of that event.
(6) In a case where the supply of services ceases under a contract before the completion of the
supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be
issued to the extent of the supply made before such cessation.
(7) Notwithstanding anything contained in sub-section (1), where the goods being sent or taken
on approval for sale or return are removed before the supply takes place, the invoice shall be
issued before or at the time of supply or six months from the date of removal, whichever is
earlier.
Explanation.––For the purposes of this section, the expression “tax invoice” shall include
any revised invoice issued by the supplier in respect of a supply made earlier.

Section 2(32): Continuous supply of goods

Continuous supply of goods means a supply of goods which is provided, or agreed to be
provided, continuously or on recurrent basis, under a contract, whether or not by means of a
wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a
regular or periodic basis, and includes supply of such goods as the Government may, subject to
such conditions, as it may, by notification specify.

Sec12: 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:
(a) the date of issue of invoice by the supplier or the last date on which he is required,
under section 31, to issue the invoice with respect to the supply; 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 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.
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:
Notification No. 66/2017-CT dated 15/11/2017 exempts all taxpayers from payment of
tax on advances received in case of supply of goods. Therefore tax on ‘supply of goods’ is to be
paid on ‘invoice basis’ and receipt basis is not applicable.
The registered person, who did not opt of the composition levy under Section 10 of the
said Act, shall pay GST on the outward supply of goods at the time of supply as specified in
section 12(2)(a) including in the situations attracting the provisions of section 14 of the said Act,
and shall accordingly furnish the details and returns as mentioned in Chapter IX of the said Act
and the rules made thereunder and the period prescribed for the payment of tax by such class of
registered persons shall be such as specified in the said Act.

Based on the above provisions determine the time of supply of goods, with suitable reasons, in
following cases assuming that:
a) Supply involves movement of goods
b) Supply does not involves movement of goods

Date of removal Date of invoice Date when goods Date of receipt of

made available payment
01/10/2020 02/10/2020 03/10/2020 15/11/2020
03/10/2020 01/10/2020 04/10/2020 25/11/2020
04/11/2020 04/11/2020 06/11/2020 01/10/2020
Hints:
Supply involving movement of goods
01/10/2020,
01/10/2020,
04/11/2020 (based on the notification)
Supply not involving movement of goods
02/10/2020
01/10/2020
04/11/2020 (based on the notification)