Determination of time of supply of goods can be bifurcated in following four categories:
• Time of supply of goods under forward charge.
• Time of supply of goods under reverse charge.
• Time of supply in case of supply of vouchers.
• Residuary clause
1. Time of supply of goods under forward charge
(a) The time of supply of goods shall be the earlier of the following:
Date of issue of invoice by the supplier or the last date by which he is required, to issue the invoice with respect to the supply of goods and invoice has to be issued as follows:
Timing to issue invoice for supply of goods |
Before or at the time of removal of goods where supply involves movement of goods
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Before or at the time of delivery of goods or making available to the recipient where supply does not involve movement of goods. |
Removal of goods, means:
1. dispatch of the goods for delivery by the supplier thereof or by any other person acting on behalf of such supplier, or
2. collection of goods by the recipient thereof or by any other person acting on behalf of such recipient. |
In case of continuous supply of goods, where successive statements of accounts or successive payments are involved the invoice shall be issued earliest of the following:
• time when each statement is issued,
• time when each payment is received.
Continuous supply of goods means
• supply of goods which is provided or will be provided
• continuously or on recurrent basis,
• under a contract.
• it may or may not be through means of a wire, cable, pipeline or other conduit.
• the supplier sends invoice to the recipient on a periodic basis. |
If the goods (being sent or taken on approval or sale or return or similar terms) are removed before it is known whether a supply has taken place or not, the time of supply shall be earliest of the following:
• time when it becomes known i.e. when approval or confirmation received that the supply has taken place or
• six months from the date of removal i.e. automatic approval |
(b) Date on which the supplier receives the payment with respect to the supply of goods.
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.
“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.
In case an amount up to one thousand rupees is received in excess of amount indicated in tax invoice, supplier will have the choice of taking time of supply as date of invoice issued for the excess amount or advance received.
2. Time of Supply of Goods under Reverse charge
In case of supplies in respect of which tax is payable on reverse charge basis, the time of supply shall be the earliest of the following dates:
a) the date of the receipt of goods, or
b) the date on which the payment is made, it is the date on which the payment is entered in the books of the recipient of goods or the date on which payment is debited in bank account of recipient of goods
c) the date immediately following thirty days from the date of issue of invoice by the supplier;
Time of supply shall be entry in the books of recipient of goods in case time of supply cannot be determined under clause (a), (b) or (c) supra.
3. Time of Supply of vouchers for Goods:
In case of supply of vouchers, by whatever name called, by a supplier, the time of supply for goods and services shall be:
a) Date of issue of voucher, if the supply is identifiable at that point; or
b) Date of redemption of voucher, in all other cases.
4. Time of Supply of Goods: Residual provision
In case it is not possible to determine the time of supply as above, the time of supply shall
a) in a case where a periodical return has to be filed, the date on which such return is to be filed and
b) in any other case, the date on which the CGST/IGST/UTGST is paid. |
