Time of Supply under GST

Under GST, the obligation to dispatch GST to Government emerges at the time of supply. Time of supply is by and large is the most important one of the three occasions, to be specific getting payment, issuance of receipt, or completion of supply. Notwithstanding, in certain conditions, the time of supply could be diverse depending on the transaction type. This article will take a gander at the time of supply under GST for goods, services, and reverse charge exchanges. 

Time of Supply under GST for Goods 

Time of supply for goods is the prior of the accompanying:  

1. The date of issue of receipt by the Supplier; or  
2. The last date on which the taxpayer should give the receipt regarding the supply; or  
3. The date on which the Supplier gets the payment regarding the supply.  

Time of Supply under GST for Services 

Time of supply for services is the prior of the accompanying:  

1. Date of issue of Invoice by the Supplier: if the Supplier gives the receipt within 30 days of offering support or the date of receipt of payment, whichever is prior; or  
2. The date of provision of service, if the Supplier neglects to give the receipt within 30 days of offering support or the date of receipt of installment, whichever is prior; or  
3. The date on which the recipient shows the receipt of services in his books of record.  

Time of Supply under GST for Reverse Charge 

In the case of reverse charge mechanism, the time of supply will be before the accompanying dates:  

1. Date of Receipt of Goods (if there should arise an occurrence of Supply of Goods); or  
2. The date of payment as entered in the books of accounts or records of the recipient or the date on which the payment is charged in his financial balance, whichever is prior; or  
3. The date promptly following:  

• For Supply of Goods 30 days from the date of issue of receipt or some other record, by whatever name called, in lieu thereof by the Supplier 
• For Supply of Services 60 days from the date of issue of receipt or some other document, by whatever name called, in lieu thereof by the Supplier: 

Note: At the point when the taxpayer is not able to decide the time of supply using the above-mentioned techniques. The time of supply will be the date on which the entry is made in the books of accounts of the recipient of such supply.  

Time of Supply under GST for Vouchers  

Vouchers are an instrument where there is a commitment to acknowledge:  

1. It as consideration 
2. Part consideration for the supply of goods or/and services  

Also, where the goods or services or both to be provided or the potential provider’s identities are either shown on the actual voucher or in related documentation, including the terms and conditions of the utilization of such instrument. One of the major examples of such vouchers is Sodexo or Jubliant.  

For vouchers, the time of supply is the date of issue of voucher, if the supply is recognizable by then. Else, the time of supply for vouchers is the date on which the voucher is redeemed. 

Time of Supply under GST for Other Types of Supply 

If, it is not possible to decide the time of supply under any of the ways referenced above, the time of supply can be resolved as under:  

1. In a situation where a GST return needs to be documented, the date on which such GST return is furnished. 
2. In some other cases, the date on which the GST is paid. 

Conclusion 

Time of supply is one of the major aspects of GST as without it the taxability of the supply cannot be determined. Hence, it is important to know the accurate time of supply to avoid any consequences for not complying with the GST provisions.