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In this case, time of Supply of Goods and Services is Relevant

Time of Supply in case of Goods in Reverse Charge

Time of Supply in case of Service in Reverse Charge

It is the earlier of

  1. Date of Payment
  2. 30 Days of Invoice Date
  3. Date of Receipt of Goods

It is the earlier of

  1. Date of Payment
  2. 60 Days of Invoice Date

 

Meaning of Date of payment

It means Date of Receipt of Amount by Recipient in Bank Account

Or

Date of Debit in Books by Recipient ..Whichever is earlier

Example 1

Time of Supply in case of Goods in Reverse Charge

Suppose Sales Made by A to B of Rs 100000

A is Unregistered but B is Registered

Whether Normal Charge or Reverse Charge Applicable

-a-

Reverse Charge is applicable as Seller is Unregistered and Buyer is Registered

-ea-

Suppose Invoice Issued by A on 29 April

Goods were received by B on 2 May along with the Invoice

Payment made on 15 May by cheque

A received cheque on 16 th May and it was cleared on 19 may

-ea-

What is Date of payment of Goods

-a-

It means

Date of Receipt of Amount by Recipient in Bank Account:-19 May

Or

Date of Debit in Books by Recipient: -16 May

Whichever is earlier i.e. 16 May

-ea-

What is time of supply of goods?

-a-

It is the earlier of

  1. Date of Payment: -16 May
  2. 30 Days of Invoice Date: -29 May
  3. Date of Receipt of Goods: -2 May

Hence time of Supply is 2 May

-ea-

When is GST Challan and Return to be deposited in this case

-a-

Since Time of Supply is 2 MAY

It will be shown in Tax Computation of May Month

Challan and Return for the same will be deposited in June

-ea- 

Example 2

Time of Supply in case of Services in Reverse Charge

Suppose Consultancy Service for the month of June provided by a CA RK Jha and Associates Bill Issued on 10 July for Rs 20000

RK Jha is a Small Service provider having less turnover and hence not registered in GST

Payment for the same is made by Infosys Ltd on 15 September by cheque

CA RK Jha received cheque on 16 th September and it was cleared on 19 September

Whether Normal Charge or Reverse Charge Applicable

-a-

Reverse Charge is applicable as Service Provider is Unregistered and Service Receiver is Registered

-ea-

What is Date of payment of Service

-a-

It means

Date of Receipt of Amount by Recipient in Bank Account: -19 September

Or

Date of Debit in Books by Recipient: -16 September

Whichever is earlier i.e. 16 September 

-ea-

What is time of supply of Service?

-a-

It is the earlier of

  1. Date of Payment: -16 September
  2. 60 Days of Invoice Date: -60 days of 10 July i.e. 8 September

Hence time of Supply is 8 September

-ea-

When is GST Challan and Return to be deposited in this case

-a-

Since Time of Supply is 8 September

It will be shown in Tax Computation of September

Challan and Return for the same will be deposited in October

-ea-

  1. GST - Goods and Services Tax, India
  2. GST Computation & Accounting
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
  • Ankit Gwalani's image
    Goods transported by A from delhi to B mumbai. 
    Transport charges paid by B on receipt of goods in mumbai.
    GST ₹56 mentioned on the cash receipt issued to B (on amount of ₹1120) to be paid by B

    In this case GST ₹56 will be recorded as IGST ₹56 or SGST and CGST ₹28 each

    Please let me know and what's the rationale for the same. Thank you
    View answer
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