Time & Value of Supply

5.
TIME AND VALUE OF SUPPLY BY- CANOTESCOMMUNITY
Time of supply of goods & services

Sec 12 (2) Time of supply of goods under Forward Charge Sec 13 (2) Time of supply of services under Forward Charge
Mechanism Mechanism
• Date of issue of invoice or • Invoice issued within 30 days from provision of service
• last date for issue of invoice whichever is earlier – Whichever is earlier
u/s 31 ✓ Date of issue of invoice
Last Date of issue of Invoice ✓ Date of receipt of payment [bank or books of
Sec 31(1) Taxable supply of Goods before or at the time of account whichever is earlier]
Removal or delivery of goods • Invoice not issued within 30 days from provision of
Sec 31(4) Continuous supply of Goods Before or at the service [banking /insurance org.] – Whichever is earlier
time of: Each successive statement of accounts or Receipt ✓ Date of completion of service + 45Days
of each successive payment ✓ Date of receipt of payment [bank or books of
Sec 31(7) Goods sent on approval basis, invoice should be account whichever is earlier]
raised Supply of good or 6 months from removal,
whichever is earlier
Sec 12 (3) Time of supply of goods under Reverse charge An insurer/bank/NBFC/telecom operator supplying service to
mechanism distinct person
• Date of receipt of goods • Before or at the time such supplier records in books of
• Date of Payment i. Books of account ii. Bank, account
whichever is earlier • Before the expiry of quarter in which such supply is
• 31st day from date of issue of invoice [invoice made
date+31 Days] Whichever is earlier
Sec 12 (4) Time of supply of voucher exchangeable for Sec 31(5) continuous supply of service [services for 3 months or
goods more]
• Supply of good is identifiable at the time of • If due payment is ascertained by contract- on or before
issue of voucher Time of supply =date of issue of the due date of payment
voucher • If due payment is not ascertained by contract -on or
• Other cases, Time of supply =date of redemption before or at the time of receipt of payment
of voucher • If payment is linked to completion of an event – on or
before the date of completion of event
Sec 12(5) Residual case in case of supply of goods Sec 31 (6) supply of service ceases before completion of
• For registered person – due date of filling of supply
return • At the time when supply ceases
• For unregistered person – date of payment of • Invoice issued to the extent of supply made before
tax such cessation
NOTE
1. Advance payment is always taxable for service
2. Advance payment up to Rs. 1000 – option of taking
invoice date as time of supply
Sec 12(6) Enhancement in value on account of interest, Sec 13 (3) Time of supply of services under Reverse charge
Fee etc for delayed payment of consideration mechanism – earlier of
• Time of supply on the date supplier received ✓ Date of payment [bank or books of account
such payment whichever is earlier]
• No GST if interest/penalty waived off ✓ Date on which entered in books of recipient
✓ Date of invoice+ 61 Days
Services received from associated enterprise outside India
✓ Date of payment [bank or books of account
whichever is earlier]
✓ Date on which entered in books of recipient
Sec 13 (4) (5) (6) – same as Sec 12 (4) (5) (6) respectively [Read word service in place of goods for sec 13 (4) (5) (6)]
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5. TIME AND VALUE OF SUPPLY BY- CANOTESCOMMUNITY
Value of supply of goods & services- Sec 15

Sec 15 (1) transaction value Means price actually paid or payable for supply of goods or service or both between
unrelated party.
• Supplier & recipient should not be related
• Price is sole consideration
Sec 15 (2) inclusion in transaction value
• any type of taxes, duties other than taxes under this act
• any amount that supplier is liable to pay but which has been incurred by recipient not already included in price.
• incidental expenses such as commission and packing charged by supplier to recipient at the time or before
delivery.
• interest or late fee for delayed payment of consideration
• subsidy directly linked to price except subsidies provided by central government/state government
Sec 15 (3) Exclusion of discounts from transaction value
• Any discount given before/at the time of supply- deductible from value
• Any discount given after supply
✓ Agreed at/before time of supply – deductible if linked to invoice & ITC reversed by recipient
✓ Not agreed – not deductible
Conditions for post-supply discount

✓ Known at the time of supply &
✓ can be calculated invoice wise
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@CANOTESCOMMUNITY
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5.

TIME AND VALUE OF SUPPLY BY- CANOTESCOMMUNITY

Time of supply of goods & services

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Value of supply of goods & services- Sec 15

Conditions for post-supply discount

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