- The Time of Supply refers to the date when tax liability arises in GST laws.
- Sections 12, 13, and 14 of the CGST/SGST Act explain the provisions of time of supply.
- Section 13(2) states that the time of supply for services is the earliest of the date of invoice issued, date of service provision, or date of receipt of services in books.
- Invoices for services should be issued within 30 days from the date of supply, or before/at the time of payment receipt, or before the completion event.
- In case of termination of supply before completion, the date of termination is considered.
- For supply of taxable services up to Rs 1,000 over the amount mentioned on the tax invoice, the time of supply is the date of issue of invoice for the excess amount.
- The date of receipt of payment is the date recorded in the supplier’s books or the date of credit in the supplier’s bank account.
- In case of reverse charge mechanism, the time of supply is the date of payment entered in the recipient’s books or the date of debit in the bank account, whichever is earlier.
- If the time of supply cannot be determined, it is the date of entry in the recipient’s books.
- For supply by an associate enterprise located outside India, the time of supply is the date of entry in the recipient’s books or the date of payment, whichever is earlier.
Source: mastersindia.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
