6/2/2018

Summary of relevant sections:

Allows us to ascertain which
Defines what is Supply and
CERTIFICATION COURSE ON GST Sec 7&8 Composite & Mixed supply
transactions falls within the ambit of
GST

TIME OF SUPPLY Sec 9 Levy & Collection

Determines What Supplies shall be
taxable, at what rate & who shall
OF collect

GOODS & SERVICES Sec 10 Composition Levy

Determines which supply can fall
under composition levy & conditions
are specified
Presentation by: Organised by
Determines which supply shall be
CA Rajat B. Talati Indirect Tax Committee
Sec 11 Exemption from Tax exempt as satisfied by the CG. on
Talati & Co., of ICAI recommendation of Council
Chartered Accountants, Mumbai Date : 3rd June 2018
Determines at what time of supply
Time of Supply
Sec 12&13 the liability to pay taxes arises
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CA Rajat Talati, Mumbai

Time of Supply
■ Time of Supply would mean the point at which:-
– Supply is deemed to have been made
– Taxable Event Occurs
INTRODUCTION – Supplier is entitled to charge GST to the customer

■ Time of Supply is relevant to determine

– Applicable tax rate
– Applicability of relevant provisions, rules & notifications
– Due date of Tax Payment

CA Rajat Talati, Mumbai 4

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Point of Taxation in Earlier Laws V/s GST

Time of supply
Tax PoT in the Existing Law PoT in GST
Service Tax Earliest of :-
- Issue of Invoice/ Completion of Service
- Receipt of Payment
Date of
Excise Duty - Manufacture of goods but payable on Basic Tax Point
removal of goods Removal/Performance
VAT/Sales tax/CST - Time of sale/time of Transfer of title or
delivery of goods in case of unascertained Time of Supply to be
goods determined U/s 12,13,14
of CGST Act
CVD/SAD - Date on which Bill of Entry- In case for
goods cleared for home consumption
Date of Date of
- Date on which Bill of Entry for home Receipt of
consumption is presented-In case of Invoice Payment
Actual Tax Point
goods cleared from warehouse
- Date of Payment of duty- in any other
case CA Rajat Talati, Mumbai
CA Rajat Talati, Mumbai 5 7

Time of supply
 Taxable event
Sec. 12
 Supply
TIME OF SUPPLY
 To be offered for tax OF
 Arise at the time of supply as determined in terms of
section 12 & 13
 Separate provisions for
GOODS
 goods and
 services

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Imp. Note:
Time of Supply of Goods
[Sec 12(2)] As per the Notification No. 66/2017 – Central Tax issued on 15.11.2017,
GST is NOT payable on advances received w.r.t. goods
(a) (b)
Date of issue Earliest of Date on which Impact of above Notification – where invoice not raised:
of Invoice by supplier received
supplier Payments/Advances
• If Payment received BEFORE supply of goods  ADVANCE
OR Earliest
of
ToS = Date of Invoice
Payment
Last date to Payment credited
issue invoice entered
in Books
in Bank • If Payment received AFTER supply of goods  NOT AN ADVANCE
A/c
ToS = Date of Payment

CA Rajat Talati, Mumbai CA Rajat Talati, Mumbai

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Time Limit for issuing Invoice – Sec. 31(1) Proviso to Sec.12(2) - Optional
A registered person supplying taxable goods shall issue a Invoice,
before or at the time of,— If supplier receives excess amount up to Rs1,000/- as compared
to Tax Invoice, ToS=
(a) removal of goods for supply to the recipient, where the supply
involves movement of goods; Date of issue of INVOICE in respect of such excess amount.
or
(b) delivery of goods or making available thereof to the recipient,
in any other case,

CA Rajat Talati, Mumbai

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When liable to pay tax under RCM - Sec.12(3): Residual Provisions - Sec. 12(5)
In case of reverse charge, the time of supply shall be
the earliest of the following dates—
Not possible to determine time of
a) the date of receipt of goods OR supply of Goods/Service as per
sub section (2), (3) or (4)
b) the date of payment OR
c) the date immediately after 30 days from the date of issue of
invoice by the supplier
Date of Date on which
If it is not possible to determine the time of supply under (a), (b) or (c), the time of supply periodical return CGST/SGST/IG
shall be the date of entry in the books of account of the recipient. to be filed ST is PAID

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Time of Supply of goods

Time of supply – in case of vouchers Sec 12(4) Interest, late fee or penalty for delayed payment of goods/services 12(6)

■ Time of supply of goods in case of vouchers Addition in value of supply by way of – interest, late fee, penalty for delayed
– Date of issue of voucher – if supply is identifiable at that point OR payment, time of supply shall be:
– Date of redemption of voucher, in all other cases
– Date on which supplier receives such addition in value

■ Voucher – sec 2(118)

■ Just issuance of d/n for delayed payment unless received would not
– Instrument- obligation to accept it as consideration for supply of trigger payment of GST thereon.
goods/services/both
– To be supplied or identities of their potential supplier

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Continuous supply of goods – section 31(4)

Where goods are sent on sale or approval [Sec 31(7)]
 Where the successive statement of accounts or successive payments are involved,
Invoice shall be issued before or at the time of
 Issue of each such statement ■ invoice to be issued earlier of:
 Date of receipt of successive payments
When goods are supplied or
 Sec 2(32) Continuous Supply of goods means 6 mths from date of removal
 Supply of goods provided or agreed to be provided
 On continuous or recurrent basis
 Under a Contract
 Whether or not by means of wire, cable, pipeline or other conduit
 For which supplier invoices recipient on regular or periodic basis
 Includes supply of such goods as Government may notify in this regard
CA Rajat Talati, Mumbai
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ToS in case of Transportation of Goods w/o issue of

Invoice – Rule 55
Sec. 13
R 55 Provides:
a) Supply of liquid gas where the quantity at the time of removal from
the place of business of the supplier is not known,
TIME OF SUPPLY
b) Transportation of goods for job work, OF
c) Transportation of goods for reasons other than by way of supply
E.g. Stationaries are supplied to the company on a regular basis SERVICES
ToS=?????

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Time of Supply for service sec.13(2) Continuous supply of services Sec 31(5)
I. ToS for services if Invoices issued within the prescribed time limit:
a) Date of issue of invoices Time limit for issue of Invoice for continuous supply =
or
1. where the due date of payment is ascertainable from the contract:
b) Date of Payment
– the invoice shall be issued on or before the due date of payment.
II. ToS for services if Invoices NOT issued within the prescribed time limit: 2. where the due date of payment is not ascertainable from the contract:
a) Date of provision of services – The invoice shall be issued before or at the time when the supplier of service
or receives the payment
b) Date of Payment 3. where the payment is linked to the completion of an event:
– the invoice shall be issued on or before the date of completion of that event
III. ToS where I & II do not apply:
Date on which the recipient shows the receipt of services in his books of
accounts

CA Rajat Talati, Mumbai CA Rajat Talati, Mumbai

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Time Limit for issue of Invoice: Proviso to Sec.13(2) - Optional

Sec 31(2) -read with Rule 47
If supplier receives excess amount up to Rs1,000/- as compare
■ Time limit for issue of Invoice for services: to Tax Invoice, ToS=
– Generally
■ 30 days from the date of he supply of service Date of issue of INVOICE in respect of such excess amount.
– For Insurer, Banks, FI, NBFC –
■ 45 days from the date of he supply of service

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When liable to pay tax under RCM - Sec.13(3): Residual Provisions - Sec. 13(5)
In case of reverse charge, the time of supply shall be
the earliest of the following dates—
Not possible to determine time of
a) the date of payment OR supply of Goods/Service as per
sub section (2), (3) or (4)
b) the date immediately after 60 days from the date of issue of
invoice by the supplier

If it is not possible to determine the time of supply under (a) or (b), the time of supply
shall be the date of entry in the books of account of the recipient. Date of Date on which
periodical return CGST/SGST/IG
to be filed ST is PAID

CA Rajat Talati, Mumbai CA Rajat Talati, Mumbai

Time of Supply of Services

Time of supply – in case of vouchers Sec 13(4) Interest, late fee or penalty for delayed payment of goods/services 13(6)

■ Time of supply of Services in case of vouchers Addition in value of supply by way of – interest, late fee, penalty for delayed
– Date of issue of voucher – if supply is identifiable at that point OR payment, time of supply shall be:
– Date of redemption of voucher, in all other cases
– Date on which supplier receives such addition in value

■ Voucher – sec 2(118)

■ Just issuance of d/n for delayed payment unless received would not
– Instrument- obligation to accept it as consideration for supply of trigger payment of GST thereon.
goods/services/both
– To be supplied or identities of their potential supplier

CA Rajat Talati, Mumbai

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Imp. Notification on ToS for Builders ToS in case of Construction of services :

Notification No.4/2018 Central Tax (Rate) dated 25.1.18. In respect of Time of supply
ToS in case of:
• Registered persons who supply development rights to
Area allotted to Land owner in lieu of When constructed premises is handed over to Land Owner.
1. a developer,
relinquishing rights of Land.
2. builder,
3. construction company or
4. any other registered person Sale of the premises (against Based on the completion of % of work i.e. as and when
against consideration, wholly or partly, in the form of construction service of complex, building consideration) demand letter will be raised on the flat buyer for completed
or civil structure; and work as per terms of the agreement.
• Registered persons who supply construction service of Area which will be received in terms of When constructed premises is handed over to Land Owner.
1. complex, JDA and if sold before obtaining O.C.
2. building or
3. civil structure Sale of premises to the buyers (against Based on the completion of % of work i.e. as and when
to supplier of development rights against consideration, wholly or partly, in the form of transfer consideration) demand letter will be raised on the flat buyer for completed
of development rights; work as per terms of the agreement.

CA Rajat Talati, Mumbai

CA Rajat Talati, Mumbai
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Imp. Notification on ToS for Builders Contd… Change in Rate of tax - supply of goods or services –
section 14
Time of supply will be the:
Goods or services supplied before change in rate of tax
time when the said developer, builder, construction company or any
Invoice issue & payment receipt date Time of supply
other registered person, as the case may be, transfers possession or the
Invoice issued – after Earlier of
right in the constructed complex, building or civil structure, to the Payment received - after • Date of receipt of payment or
person supplying the development rights by entering into a conveyance • Date of issue of invoice
Invoice issued – before Date of issue of invoice
deed or similar instrument (for example allotment letter). Payment received - after
Invoice issued – after Date of receipt of payment
Payment received – before
CA Rajat Talati, Mumbai
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Change in Rate of tax - supply of goods or services

Section 14
GOODS OR SERVICES SUPPLIED AFTER CHANGE IN RATE OF TAX
INVOICE ISSUE & PAYMENT RECEIPT DATE TIME OF SUPPLY

INVOICE ISSUED – BEFORE EARLIER OF

PAYMENT RECEIVED – BEFORE • DATE OF RECEIPT OF PAYMENT OR

Thank you!
• DATE OF ISSUE OF INVOICE

INVOICE ISSUED – AFTER DATE OF ISSUE OF INVOICE

PAYMENT RECEIVED – BEFORE

INVOICE ISSUED – BEFORE DATE OF RECEIPT OF PAYMENT

PAYMENT RECEIVED – AFTER

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