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Time of Supply of Goods and Services Under GST

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In GST model Law separate provisions have been prescribed to determine the time of supply of goods and services. Liability for GST (Goods and Services Tax) will arise only at time earliest of occurrence of events of supply, which will be determined as under-

Time of Supply of Goods:

1. Normal Supply: Under normal supply, time of supply will be earliest of the following-

  • Date issue of invoice
  • Date of receipt of payment.
  • Date of Removal of Goods, if goods involve movement OR date on which goods are made available to the recipient if goods do not involve movement.
  • Date on which the recipient shows the receipt of goods in his books of accounts

Above provisions are explained through below given example-

S. No. Date of Removal Date of Invoice Date of Receipt of Payment Date of Entry in Books of Accounts Time of Supply
1 22.05.2016 26.05.2016 21.05.2016 30.06.2016 21.05.2016
2 25.06.2016 05.07.2016 27.06.2016 28.06.2016 25.06.2016
3 30.07.2016 24.06.2016 23.06.2016 06.07.2016 23.06.2016
4 21.07.2016 25.07.2016 30.07.2016 20.07.2016 20.07.2016

2. Continuous Supply of Goods: Earliest of the following will be the time of supply:

  • a. Where the successive statement of accounts or successive payment of accounts are involved-
    • Date of expiry of successive payment or statement.
  • b. No successive payment of accounts: Earliest of following-
    • Date of issue of the invoice.
    • Date of receipt of payment.

3. Under Reverse Charge: Earliest of the following will be the time of supply:

  • Date of receipt of supply.
  • The date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account
  • The date immediately following thirty days from the date of issue of invoice

4. Goods sent on approval basis: Earliest of the following will be the time of supply:

  • Before or at the time of supply
  • Six months from the date of approval.

Read Also: GST Forms: Return Filing, Rule, Registration, Challan, Refund, Invoice

Time of Supply of Services

Time of Supply shall be

1. Invoices issued within prescribed time: Earliest of following-

  • Date of issue of the invoice.
  • Receipt of payment.

2. Invoice not issued within prescribed time: Earliest of following-

  • Date of the provision of service.
  • Date of Receipt of payment.

3. Case other than above two situations:

  • Date on which recipient show receipt of services in books of accounts.

In Case of Continuous Supply of Services Time of Supply shall be

1. Where the due date of payment is ascertainable from the contract: Earliest of the following-

  • Payment has been received by the supplier of service.
  • Date on which recipient is liable to make payment, whether the invoice has been issued or not.

2. Where the due date of payment is not ascertainable from the contract: Earliest of the following-

  • Date of issue of the invoice.
  • Date of Receipt of payment.

Recommended: What is Mixed and Composite Supply Under Goods and Services Tax?

3. In case payment is related to completion of the event, then the time of completion of an event.

4. In case of reverse charge time of supply shall be earlier of following dates-

  • the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or
  • the date immediately following sixty days from the date of issue of the invoice.

Thus above are the provisions discussed related to time value of supply of goods and services which will help us in determining the taxable event in case of supply of goods and services.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by CA Vineeta
Hi,I am Vineeta Sharma. I am a chartered accountant. I have done my (B.Com) from Rajasthan University. I have keen interest in taxation field. View more posts
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4 thoughts on "Time of Supply of Goods and Services Under GST"

  1. Hi Vineeta, My One GST’s line Question? I requested Please you immediately Ans me Thanks.

    Q. (1) Step by Step Guide on how to file the Form GST TRAN-1 – TN CTD?

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