Chapter 6: Time of Supply

Flashcards covering key vocabulary and definitions related to the time of supply under GST, including sections 12 and 13, reverse charge, vouchers and forward charge.

Time of Supply

Indicates the point in time when the liability to pay tax arises under the CGST Act and SGST/UTGST (intra-State supply) or IGST (inter-State supply).

Section 12

Deals with the time of supply of goods.

Section 13

Deals with the time of supply of services.

Section 14

Provides for determining the time of supply when there is a change in the rate of tax on the supply of goods or services.

Associated enterprises

An enterprise which participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise as defined in section 92A of the Income-tax Act, 1961.

Document

Includes written or printed record of any sort and electronic record as defined in clause (t) of section 2 of the Information Technology Act, 2000.

Invoice or Tax Invoice

Means the tax invoice referred to in section 31.

Goods

Every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply [Section 2(52)].

Reverse Charge

The liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub- section (3) or sub- section (4) of section 5 of the Integrated Goods and Services Tax Act [Section 2(98)].

Services

Anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.

Recipient of supply

The person who is liable to pay consideration, or the person to whom goods are delivered when no consideration is payable, or the person to whom the service is rendered when no consideration is payable.

Supplier

The person supplying the goods or services, including an agent acting on behalf of such supplier.

Voucher

An instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument.

Time of supply of goods under forward charge Time of Supply

Date of issue of invoice/ Last date of issue of invoice under section 31

Continuous supply of goods

A supply of goods that is provided continuously or on a recurring basis under a contract, with invoices issued regularly or periodically [Section 2(32)].

Time of supply of goods under reverse charge

Earliest of: Date of receipt of goods, date of payment, or date immediately following 30 days from the date of invoice. If these are unascertainable, then it is date of entry of goods in books of account of recipient.

Time of supply of vouchers exchangeable for goods

Date of issue of voucher (if supply is identifiable at that point) or date of redemption of voucher (in other cases).

Time of supply of goods in residual cases

Date on which return is to be filed, or date on which GST is paid.

Time of supply for enhancement in value

Date on which the supplier receives such addition in value (interest/late fee/penalty).

Time of supply of services under forward charge

If invoice is issued within the prescribed time, time of supply is the earlier of the date of invoice or the date of payment. If invoice is not issued within the prescribed time, it is the earlier of the date of provision of service or the date of payment.

Time limit for issuing tax invoice for service

Within 30 days from the date of supply of service [insurance companies/banking companies/financial institutions including NBFCs: 45 days].

Continuous supply of services

Services provided continuously or on a recurrent basis under a contract for a period exceeding 3 months with periodic payment obligations [Section 2(33)].

Time of supply of services under reverse charge

Earliest of: Date of payment or date immediately following 60 days from the date of invoice. If these are unascertainable, then it is the date of entry of service in the books of account of the recipient.

Import of service from associated enterprise

Date of payment or date of entry of service in books of account of recipient, whichever is earlier.

Time of supply of vouchers exchangeable for services

Date of issue of voucher (if supply is identifiable) or date of redemption (in other cases).

Time of supply of services in residual cases

Date on which periodical return is required to be filed, or date on which GST is paid.

Time of supply for addition in value for service

Date on which the supplier receives such addition in value (interest/late fee/penalty).