Point of taxation or the time of supply is the time when goods have been supplied and services have been provided or are deemed to be supplied and provided. Determination of tax rate, value of goods and due date for payment of taxes are based upon the point of taxation.
Liability to pay taxes under CGST Act, SGST Act, arises as determined by the time of Supply of Goods and Services. There are different rules for Time of supply of Goods and Time of Supply of Services.
Time of supply of Goods is determined as per the provisions of Section 12(1) of the CGST Act, 2017:
Time of Supply occurs prior to the aforementioned two dates that are: -
If the supply involves movement of goods invoice should be issued before or at the time of removal of goods otherwise it should be issued before or at the time of delivery of the goods / making them available to the recipient.
On the recommendation of GST Council, Government has notified the registered individual as the class of persons who shall pay GST Liability at the time of Supply.
Payment of GST liability at the time of receipt of advance payment for the supply of Goods is exempted for all the taxpayers except those registered under Composition Scheme as per Notification No. 66/2017
Time of Supply of Services is earlier of the below mentioned two dates that are:-
The last date by which invoice has to be issued in terms of Section 31 is within a period of maximum 30 days from the provision of service. In case of Banking and Financial Services Institutions (BFSIs) such a period extends to 45 days.
Reverse charge is that mechanism under which the tax liability arising on the supply of goods is to be paid by the recipient of the goods. Time of Supply of Goods under RCM is earlier of the following dates:-
If the time of Supply cannot be determined in the above prescribed manner, then time of supply is considered to be the date on which such transaction is recorded in the book of accounts of recipient of Goods.
Time of Supply of Services under RCM is earlier of the following dates:-
If the time of Supply cannot be determined in the above prescribed manner, then time of supply is considered to be the date on which such transaction is recorded in the book of accounts of recipient of Services.
A Voucher is an instrument whose holder can get a discount or exchange it for goods or services.
Time of Supply of Vouchers is:-
14th May, 2021
29th April, 2021
19th March, 2021
1st February, 2021
16th December, 2020
7th December, 2020
9th November, 2020
17th December, 2019
13th November, 2019
21st August, 2019
12th August, 2019
25th June, 2019