How is the Time of Supply of Goods fixed as per GST Scheme ?

The liability to pay tax on goods shall arise at the time of supply, as determined in accordance with the provisions of this section.  In each of the cases, the Time of Supply shall be the earliest date applicable as per conditions.

When 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 amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount.

The date on which the supplier receives the payment” shall be the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account, whichever is earlier.

Similarly, for supplies on which the tax becomes payable on Reverse charge basis, the following rules become applicable. The Time of Supply shall be the earliest date applicable as per conditions.

When it is not possible to determine the time of supply by the above mentioned criteria,  the time of supply shall be the date of entry in the books of account of the recipient of supply.

 For supply of vouchers by a supplier, the following rules become applicable. The Time of Supply shall be the earliest date applicable as per conditions.

When  it is not possible to determine the time of supply under any of the conditions or cases listed above, the time of supply shall be one of the following:

·         In a case where a periodical return has to be filed, be the date on which such return is to be filed

·         The date on which the tax is paid.

The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.

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