Time of Supply
To compute and discharge tax liability, it is imperative to know the date when the tax liability arises, i.e. the date on which the charging event has arisen. In GST law, it is learned as Time of Supply.
Point of time when the supplier receives the payment or date of receipt of payment.
The term “The date on which supplier receives the payment” or “The date of receipt of payment” indicates the date on which amount is entered in his books of accounts or the date on which the earnings are credited to his bank account, whichever is earlier.
The idea of the time of supply is mentioned under sections 12 & 13 of the Central Goods and Service Tax (CGST) Act, 2O17. This Section plainly expresses that the liability to pay GST entirely relies upon the time of supply of goods and services. The provisions related to goods supply are different from that of services. Additionally, the determination of the supply value helps understand the concept of supply under GST more clearly.
Source Prakash Patil
