TMI BlogTime of SupplyX X X X Extracts X X X X X X X X Extracts X X X X ..... oice with respect to the supply; or (ii) the date on which the supplier receives the payment with respect to the supply. However, vide notification 66/2017-Central Tax dated 15.11.2017 , liability to pay tax at the time of receipt of advance has been relaxed in case of goods. Q 3. When does the liability to pay GST arise in respect of supply of services? Ans. Section 13 of the CGST /SGST Act provides for time of supply of services. The time of supply of services shall be the earlier of the following namely, (a) the date of issue of invoice by the supplier if the invoice is issued within the period prescribed under section 31 or the date of receipt of payment whichever is earlier; or (b) the date of provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ans. No. The supply of services shall be deemed to have been made to the extent it is covered by the invoice or the part payment. However, for goods payment of tax will need to be made upon date of issue of invoice, irrespective of the fact whether or not advance or part payment is received. Q 8. What is the time of supply of goods in case of tax payable under reverse charge? Ans. The time of supply will be the earliest of the following dates: a) date of receipt of goods; or b) date on which payment is made; or c) the date immediately following 30 days from the date of issue of invoice by the supplier. Where it is not possible to determine the time of supply under the above three clauses, the time of supply shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the invoice has been issued prior to change in rate of tax but the payment is received after the change in rate of tax, the time of supply shall be the date of issue of invoice; or (iii) where the payment is received before the change in rate of tax, but the invoice for the same has been issued after the change in rate of tax, the time of supply shall be the date of receipt of payment; (However for supply of goods payment of tax need to be made only at the time of issue of invoice in terms of notification 66/2017-Central Tax dated 15.11.2017 ) Q 13. What is the time of supply, where supply is completed after the change in rate of tax? Ans. In such cases time of supply will be (i) where the payment is received afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, 2017? Ans. The new rate of 20% shall be applicable as goods are supplied and invoice issued after 1.9.2017 Q 16. What is the time period within which invoice has to be issued for supply of Goods? Ans. As per Section 31 of CGST /SGST Act a registered taxable person shall issue a tax invoice showing description, quantity and value of goods, tax charged thereon and other prescribed particulars, before or at the time of (a) removal of goods for supply to the recipient, where supply involves movement of goods or (b) delivery of goods or making available thereof to the recipient in other cases. Q 17. What is the time period within which invoice has to be issued for supply of Services? Ans. As per Section 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the invoice shall be issued before or at the time when the supplier of service receives the payment.; (c) where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that event. Q 20. What is the time period within which invoice has to be issued where the goods being sent or taken on approval for sale? Ans. The invoice in respect of goods sent or taken on approval for sale or return shall be issued before or at the time of supply or six months from the date of removal, whichever is earlier. Q 21. What is the time of supply in respect of supply by an associate enterprise, located outside India? Ans. An associated enterprise is defined in section 2(12) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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