TMI BlogTime of Supply of Goods – Under Forward chargeX X X X Extracts X X X X X X X X Extracts X X X X ..... he supply involves movement of goods ; or Delivery of goods or making available thereof to the recipient, in any other case (in other words movement of goods not involve ) , [section 31(1)] Example ABC placed order to supply of mobile phone to ZYX, who agrees to supply within 10 days from the date of order. It is a case of supply involving movement of goods. VPL a manufacturer asks hi supporting manufacturer Goodluck to develop a mould for PQR for separate consideration. The said mould will kept and used by ABC for manufacture of components for 5 year. In this case, there is no movement of mould. In case of continuous supply of goods , where successive statements of accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of supply shall be earliest of following dates Date of issue of invoice by the supplier, or Last date on which the supplier is required to issue the invoice as per section 31(1) of CGST Act A registered person who opted for the composition levy Section 10 of CGST Act. and the registered person making supply of specified actionable claims as defined in clause (102A) of section 2 of the CGST Act, apply general provision mention in section 12(2) of Section of CGST Act. Time of supply shall be earliest of following dates: - Date of issue of invoice by the supplier, or Last date on which the supplier is required to issue the invoice as per section 31(1) of CGST Act ], or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gnificant to note that the Notification No. 40 / 2017 Central Tax dated 13.10.2017 as superseded vide Notification No. 66 / 2017 Central Tax dated 15 Nov. 2017 Exempt all registered person excluded the registered person who opt for the composition levy section 10 of the CGST Act from the requirement of payment of tax at the time of receipt of advance in case of supply of goods and provides payment of tax in such case at the time of supply as u/s 12(2)(a). Exception provided in the notification no. 66/2023 - following registered person required to pay tax at the time of receipt of advance in case of supply of goods under section 12(2)(a) the registered person who opt for the composition levy se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. For ₹ 2,50,000/- on 23 Jun and issues the invoice on 25 th Jun. Payment for the goods is made by Surej Pvt. Lt.d on 15 th July. In this case - As per term Sec. 12(2) of CGST Act read with Notification No. 66/2017 Central Tax dated 15 Nov. 2017 Time of supply earliest of the following date Date of issue of invoice 25 th Jun Last date of issue of invoice as per sec.31(1) 23 rd Jun ( movement of goods involve ) Therefore, time of supply of goods 23 rd Jun. Example 2 . XYZ Pvt. Ltd. has entered in to contract with CGL Pvt. Ltd. To supply of gas by pipeline to CGL Pvt. Ltd. For the period of one year. As per terms of contract a) CGL ltd. Shall make payment 7 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were dispatched on 22 nd July but no invoice was raised and the transaction dispatched of goods was not entered in the accounts. There was no evidence of receipt of payment. In this case - As per term 12(2), Time of supply shall be earliest of following dates Date of issue of invoice by the supplier, or Last date on which the supplier is required to issue the invoice The invoice has not been the time of supply for the purpose of payment will be the last date on which the invoice is required to be issued. The invoice for supply of goods must be issued on or before the dispatch of goods i.e. 22 nd July. Therefore, the time of supply for the purpose of payment of tax for the goods will be 22 nd July wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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