GST – Time of Supply of Goods

Section 12 – Time of supply of goodsimg_20160930_192531

(1) The liability to pay CGST / SGST on the goods shall arise at the time of supply as
determined in terms of 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 28, 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 shall, at the option of the said
supplier, be the date of issue of invoice.

Explanation 1.- For the purposes of clauses (a) and (b), 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.

Explanation 2.- For the purpose 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 accounts 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 on which the payment is made, or
(c) the date immediately following thirty days from the date of issue of
invoice by the supplier:

PROVIDED that where it is not possible to determine the time of supply under
clause (a), (b) or (c), the time of supply shall be the date of entry in the books of
account of the recipient of supply.

Explanation.- For the purpose of clause (b), “the date on which the payment is
made” shall be the date on which the payment is entered in the books of
accounts of the recipient or the date on which the payment is debited in his bank
account, whichever is earlier.

(4) In case of supply of vouchers, by whatever name called, 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) In case it is not possible to determine the time of supply under the provisions of
sub-section (2), (3) or (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 CGST/SGST is paid.

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