Time of Supply in case of Goods under GST

ALL ABOUT THE TIME OF SUPPLY OF GOODS UNDER GST

The time of Supply is a very important aspect concerning GST as the tax rate on the time of supply has to be charged in respect of the supply.

Here we will look at the time of supply in the case of Goods only under GST.

In case Tax is payable under Forward Charge :

As per Section 12(2) of the CGST Act, the time of supply in case of goods under forward charge is the earliest of the following :

(a) Date of issue of invoice or the last date up to which invoice can be issued u/s 31(1) of the CGST Act

or

(b) Date on which the supplier has received the payment (entering in books of account or credit in bank statement whichever is earlier)

However, vide notification 66/2017 dtd. 15/11/2017 This provision has been made redundant as there will be no GST payable at the time of receipt of payment in case of a supply of goods.

Thus in the case of a supply of goods, the time of supply will be the date of issue of invoice or the due date up to which the invoice can be issued.

Now we look at the provision relating to the issue of invoice in case of supply of goods.

As per Section 31(1), the time limit for issuance of the invoice is :

(a) In case of movement of goods, it is before or at the time of removal of goods

(b) In other cases, it is at the time of delivery of goods.

In case the tax is payable under Reverse Charge

In this case, the time of supply of goods will be the earliest of the following :

(a) Date of receipt of goods

(b) Date of payment

(c) 31st day from the date of issue of invoice by the supplier

GST FILINGS MADE SIMPLE AT WWW.KARRTAX.IN