TIME OF SUPPLY

• It means the date on which the

charging event has occurred. As a
result the rate of CGST/SGST or
IGST or UTGST will be decided in
TIME OF accordance with the time of
SUPPLY supply. Based on time of supply we
will also determine the due date of
payment of GST.
 Actual date of issue of invoice by the supplier

Due date for issue of invoice by the supplier [Section 31(1)*]:

- Non-Continuous Supply involves movement: Time of removal of goods for supply
[31(1)(a)]
As per Section 12(2) of - Non-Continuous Supply - Other cases: Delivery of goods/ making available to the
CGST ACT, time of supply recipient [31(1)(b)]
of goods shall be earlier of
invoice/ payment, i.e., – - Continuous Supply: Date of issue of statement of account/receipt of payment
[31(4)]
- Sale on approval basis: Earlier of time at which it becomes known that the supply
has taken place OR 6 months from date of removal [31(7)]

Date of receipt of payment (date on which payment is entered in the books of Accounts of supplier
or Date on which payment is credited to the supplier’s bank a/c whichever is earlier- Explanation 2
to Section 12(2)
Time of • Excess payment of up to Rs. 1000/- is received in
respect of any invoice
✓Time of supply shall be at the option of the
Supply of supplier - date of issue of invoice in respect of
such excess amount. (Proviso to Sec 12(2))
Goods – Sec
12(2)
 Non continuous supply Due date of Payment Credit in
Invoice date issue of entry in bank Time of
of goods supplier's supply
invoice books account
Section 12(2)
r/w Section 31(1)

1 Invoice raised before 10-March-18 20-March-18 26-March-18 30-March-18 10-March-18

removal

2 Advance received 30-March-18 20-March-18 10-Feb-18 25-Feb-18 20-March-18

3 Advance received 25-Jan-18

(Composition Dealer) 10-Feb-18 20-Feb-18 25-Jan-18 28-Jan-18
 Non continuous supply of
goods Invoice/ Due date of Receipt of
Time of supply
Section 12(2) r/w Section document date issue of invoice payment
31(1)

4 Delayed issue of invoice 26-March-18 20-March-18 28-March-18 20-March-18

5 Inter-State stock transfer 20-March-18 20-March-18 - 20-March-18

10-March-18
6 10- March-18
(40%)
Advance received, invoice for
full amount issued on same
10-March-18 12-March-18
day (40% advance, 60% post 20-March-18
supply payment) 10-March-18
(60%)
Sale on approval basis
Removal of Issue of Accepted by Receipt of Time of
Section 12(2) r/w Section
goods invoice recipient payment supply
31(7)
Acceptance
communicated within 6 01-Feb-18 25-Feb-18 15-Feb-18 25-Feb-18 15-Feb-18
months of removal
01-Apr-18
Acceptance not (end of 6
communicated within 6 01-Oct-17 15-May-18 15-May-18 18-April-18 months from
months of removal date of removal
of goods)
• No tax on advance received against the supply of goods
As per Notification No. 40/2017- CT dated 13-10-2017, suppliers of goods having aggregate
turnover of upto Rs 1.50 crores in the last year or current year have been exempted to pay
tax upon receipt of advance (w.e.f 13-10-2017) as the time of supply in such cases would be
the date of invoice or due date of issue of invoice in light of Clause (a) of Section 12(2).
Subsequently this exemption has been extended w.e.f. 15-11-2017 to all tax payers vide
Notification No 66/2017-CT dated 15-11-2107.
This benefit is not available to person covered under Composition Scheme
• The phrase “the date on which supplier receives the payment” or “the date of receipt of
payment” means:
• the date on which payment is entered in his books of accounts or
• the date on which the payment is credited to his bank account, whichever is earlier
TIME OF SUPPLY OF GOODS UNDER FORWARD CHARGE AS
PER SECTION 12(2)

Date of issue of invoice /

Last date of issue of invoice
under section 31

Date on which the payment is

Which
recorded in the books of account ever is
of the supplier [presently earlier
irrelevant for the purpose of
payment of tax]

BANK Date on which the payment is

credited to the supplier’s bank
account [presently irrelevant for
the purpose of payment of tax]
 BANK
Whichever is earlier
IN CASE OF
REVERSE
CHARGE
MECHANISM
u/s. 12(3)

Date on which goods are recorded in the

books of account of the recipient of supply
 • ”Voucher" [Section 2(118)]
• As commonly understood, vouchers are instruments that
can be exchanged as payment for goods or services of the
designated value. As per the definition, they are
instruments, that certain persons (potential suppliers) are
Time of supply obliged to accept as consideration, part or full, for goods
and/or services. The instrument or its related
documentation sets out the terms and conditions of
of vouchers use, the goods and/or services covered, and the identity of
the potential suppliers of such goods and/or services.
exchangeable • If the supply is identifiable at the point at which voucher is
issued: The date of issuance of the voucher
for goods • In all other cases i.e. the supply is not identifiable at the point at
which voucher is issued: The date of redemption of voucher
• As per Notification No. 66/2017-CT, in case of vouchers, where
[Section 12(4)] the supply was identifiable at the point at which the voucher was
issued, amounted to advance payment and was thus time of
supply in such case was the date of issuance of voucher (i.e.
advance payment)
• Thus in both the above cases, the time of supply shall be the
date of redemption of voucher.
Time of supply of goods in residual cases
[Section 12(5)]

If the situation is not covered by any of the provisions discussed

above, the time of supply is fixed under sub-section (5) of section
12, in the following manner:

•Due date for filing of the periodical return, or

•In any other case, date on which GST is paid.

Time of Supply of Services – Sec 13(2)
• If invoice issued within prescribed Date of issue of Invoice or receipt
time u/s 31(2) - 30 days (45 days in of payment(Earlier of entry in books
case of Banking, Insurance, Financial
Institution or NBFC company)- Clause or credit in bank account),
(a) whichever is earlier

If invoice not issued within 30 days

Date of provision (completion) of
(45 days in case of Banking,
service or receipt of payment,
Insurance, Financial Institution or
whichever is earlier
NBFC company)- Clause (b)

Date on which recipient shows the

If both the above clauses do not
receipt of services in his books of
apply
accounts
 Payment Credit in
Section 13(2) Invoice date Invoice due entry in bank Time of
date supplier's account supply
books

1 Invoice raised before

10-March-18 20-March-18 26-March-18 30-March-18 10-March-18
completion of service

2 Advance received 30-April-18 20-April-18 10-April-18 30-April-18 10-April-18

 Based on due date for
invoicing Commencem
Section 13(2) r/w Invoice date ent of Completion Receipt of Time of
service of service payment supply
Section 31(2) r/w
CGST rule 47

3 Delayed issue of invoice 26-March-18 20-Jan-18 16-Feb-18 28-April-18 16-Feb-18

Advance received,
4 30-April-18 30-April-18
invoice for full amount
issued on same day (40% 30-April-18 30-March-18 3-April-18
advance, 60% post 04-May-18 30-April-18
supply payment)

Continuous supply of
services Date as per Receipt of
Invoice date Time of supply
Section 13(2) r/w Section contract payment
31(5)
02-Feb-18 10-Feb-18 15-Feb-18 02-Feb-18
Section 31(5)(a)
Contract provides for 17-Feb-18 10-Feb-18 15-Feb-18 10-Feb-18
5
payments monthly on the 10-Jan-18 10-Jan-18 06-Jan-18 06-Jan-18
10th of succeeding month
12-Feb-18 10-Feb-18 25-Feb-18 10-Feb-18
Time of Supply of Services - Reverse Charge
u/s. 13(3)
• Where tax liable to be paid on reverse charge basis, the time of
supply of goods/services shall be earliest of
• Date on which payment is entered in the books of recipient or debited to the
recipient’s bank a/c (whichever is earlier)
• 61st day (in case of services) from the date of issue of invoice by supplier
• Note: This factor is not relevant in case of import of services from an associated enterprise outside India
• Where it is not possible to determine time of supply in the 3 other cases: Date
of entry in the books of account of the recipient
• Note: This factor is relevant in case of import of services from an associated enterprise outside India
• In case of import of services from an associated enterprise out side India the
time of supply is the date of entry in the books of account of recipient of
supply OR date of payment, whichever is earlier. (2nd proviso to Section 13(3)
of CGST Act).
 Date of
Reverse charge Removal of Receipt of Payment by Time of
invoice issued
Section 12(3) goods goods recipient supply
by supplier

1 General 31-Oct-17 31-Oct-17 20-Nov-17 30-Nov-17 20-Nov-17

2 Advance paid 31-Oct-17 31-Oct-17 20-Nov-17 05-Nov-17 05-Nov-17

No payment made for the

3 31-Oct-17 30-Dec-17 05-Jan-18 - 30-Nov-17
supply
 Reverse charge Date of Date of Payment by Entry of Time of
Section 13(3) invoice issued completion of recipient receipt of supply
by supplier service services in
recipient's
books
4 General 31-Oct-17 31-Aug-17 20-Nov-17 30-Nov-17 20-Nov-17

5 Advance paid 31-Oct-17 31-Oct-17 05-Nov-17 31-Oct-17 05-Nov-17

6 Delay in payment (Max. 31-Oct-17 31-Oct-17 10-Feb-18 31-Oct-17 31-Dec-17

60 days from date of (61st day from
invoice) date of
invoice)
7 Service received from 31-Oct-17 30-Nov-17 05-Apr-18 31-Mar-18 31-Mar-18
associated enterprise
located outside India
8 Service by unregistered
person, no payment - 30-Nov-17 - 05-Dec-17 05-Dec-17
made