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Time of Supply of Goods and Services Under GST

supply-time-of-goods-and-services

In the 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 the 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, the time of supply will be the earliest of the following-

Above provisions are explained through below given example-

S. No.Date of RemovalDate of InvoiceDate of Receipt of PaymentDate of Entry in Books of AccountsTime of Supply
122.05.202526.05.202521.05.202530.06.202521.05.2025
225.06.202505.07.202527.06.202528.06.202525.06.2025
330.07.202524.06.202523.06.202506.07.202523.06.2025
421.07.202525.07.202530.07.202520.07.202520.07.2025

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

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

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

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

Time of Supply of Services

The time of Supply shall be

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

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

3. Case other than the above two situations:

Determining Time of Supply under Reverse Charge

In the case of reverse charge, the time of supply for the service receiver is the earliest of the following:

Starting from 15.11.2017, ‘Date of Payment’ applies only to services and is not applicable to goods, as per Notification No. 66/2017 – Central Tax

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-

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

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 the following dates-

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.

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