Time Of Supply of Goods And Services Explained Under GST


Date: 21 Sep 2022

Time Of Supply Under GST Explained


According to the GST law, the time of supply is an essential factor in every transaction that suppliers of goods and services engage in. It refers to the moment when goods or services are considered to have been rendered for the purpose of calculating when a taxpayer is required to pay taxes. You can get all the details concerning the GST time of supply here.


Time Of Supply Under Normal Charge

The date the invoice is issued (or the final day by which it should have been issued) or the date the payment is received is when the goods are supplied.

  • The time of supply for any sum exceeding Rs. 1000 that the supplier receives over and above the invoice amount must, at the supplier's discretion, be the date the invoice was issued.

  • The supply must be deemed to have been made to the extent covered by such papers as of the date of invoice issuance or the date of payment receipt (as the case may be).

  • The payment date must be received before the date the payment was recorded in the business's books or when the money was credited to its bank account.


Time of Supply Under Reverse Charge  

A reverse charge refers to a situation in which the beneficiary of the products or services bears the tax burden rather than the supplier. The earliest of the following dates must be used as the time of supply in a reverse charge scenario.

  • The date of receipt of goods


  • The date of payment


  • The day following the 30-day mark from the supplier's invoice release date (60 days for services).


The date of entry in the recipient's accounting records will serve as the time of supply if it is difficult to ascertain it under the circumstances mentioned above.

The date of payment shall be earlier of-

  • Date when the recipient recorded the payment in his records


  • The day that his bank account is debited for the payment.


Time Of Supply For Vouchers 

A voucher is an instrument that, according to the CGST act, must be accepted as payment in whole or in part for the supply of goods and services, or both, or whose identity as a potential payment is stated on the instrument itself or in related documentation, such as the terms and conditions of use of such instruments. In the Indian economy, vouchers are frequently utilised for transactions. A store owner can issue a voucher for a specified supply or one known when the voucher is issued.

In the case of the supply of vouchers, the time of supply is -

  • The voucher's issuing date, if the supply can be determined at that time.


  • The date of redemption of the voucher, in all other cases.


When can the Time Of Supply not be determined?

The following will be the case if the aforementioned clause cannot be used to determine the time of supply:

  • The deadline for filing a periodical return


  • In any other case, the day when the CGST/SGST is paid.

The earliest of the dates listed above will be the tax collection event under the GST regime. The different actions that trigger the tax levy, such as issuing invoices or receiving payments in the case of a provision of goods or services or concluding activity in the case of a supply of services, demonstrate the government's desire to guarantee that tax is collected as soon as possible.


Rules Of Time of Supply Of Goods

  • The date on which the supplier first issued an invoice. The final day on which the provider is required by law to issue the invoice with regard to the supply if the invoice is not issued.

  • Date of payment receipt by the supplier 

The CGST Act of 2017's Section 148 grants the government authority (on the recommendation of the GST Council). To inform specific classes of registered individuals of unique requirements to be met by such individuals, including those for registration, the provision of returns, the payment of taxes, and the management of such individuals.


Rules Of Time of Supply Of Services

Earliest of the Following Dates:

  • Date of invoice issuance by the supplier (if it is issued within the time frame legally required by section 31(2) of the CGST Act or the date of payment receipt, whichever comes first).

  • Date of service provided (or, if earlier, the date of payment received, if the invoice is not issued within the legally required period under section 31(2) of the CGST Act)

  • If the conditions mentioned above do not apply, the date on which the receipt appears as a service receipt in his books of accounts.

To the extent that the invoice or payment, as applicable, covers the supply of goods or services, it is considered to have been made.