time of supply

Originally posted by : Rishi Jhajharia
	time of supply of goods and services

Time of Supply under Normal Cases

IN GOODS

1) Date of Issue of Invoice/ Last Date of Issue of Invoice u/s 31

2) Date on which tha payment recorded in books of supplier

3) Date pn which the payment is credited to the supplier bank account

Whichever is earlier in above 1 to 3

IN SERVICE ( If Invoice issued within time )

1) Date of Issue of Invoice ( If Invoice is not issued than date of provision of service )

2) Date on which tha payment recorded in books of supplier

3) Date on which the payment is credited to the supplier bank account

Whichever is earlier in above 1 to 3

The time of supply of goods shall be the earlier of the following dates –
(a) The date of issuing of invoice (or the last day by which invoice should have been issued)
OR
(b) The date of receipt of payment
-whichever is earlier

If the supplier receives an amount up to Rs. 1000 in excess of the invoice amount, the time of supply for the extra amount shall be the date of issue of invoice (at the option of the supplier).

For (a) and (b)- The supply shall be assumed to have been made to the extent it is covered by the invoice or the payment (as the case may be).

For (b)- the date of receipt of payment shall be earlier of-
1. The date on which he entered the payment in his books
OR
2. The date on which the payment is credited to his bank account

Example:

(a) Date of invoice 15th May 2018
(b) Date of receipt of payment 10th July 2018
(c) Date when supplier recorded receipt in books 11th July 2018
Time of supply will be 15th May 2018

Time of supply under reverse charge

Reverse charge means the liability to pay tax is by the recipient of goods/services instead of the supplier. In case of reverse charge, the time of supply shall be the earliest of the following dates—
(a) the date of receipt of goods OR
(b) the date of payment OR
(c) the date immediately after THIRTY days from the date of issue of invoice by the supplier (60 days for services)

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

For clause (b)- the date of payment shall be earlier of-
(a) The date on which the recipient entered the payment in his books
OR
(b) The date on which the payment is debited from his bank account

Example:
(a) Date of receipt of goods 15th May 2018
(b) Date of payment 15th July 2018
(c) Date of invoice 1st June 2018
(d) Date of entry in books of receiver 18thMay 2018
Time of supply of goods 15th May 2018
If for some reason time of supply could not be determined supply under (a), (b) or (c) then it would be 18th May 2018 i.e., date of entry