Time and Supply of Goods and Services

GST - Goods and Services Tax, India
GST Computation & Accounting

#### What is Time and Supply of Services?

It is the time Sale of services will become taxable under GST

IF Time and Supply of Services is in September that means goods become taxable in September.

We will take the same in September computation and tax on it will be paid in October

Note :- In Service Tax, there was similar concept earlier which was called Point of Taxation.

When is GST Payable?

• Is it at the time of Service Provided?
• Is it at the time of Issue of Invoice?
• Is it at the Time of Receipt of Money?

This is determined with the help of Section 13 of CGST Act

When is Invoice to be Issued in Case of Services

Invoice is to be issued within 30 days of providing service

However for Banks, NBFC, Period is 45 days

What is Time of Supply as per Section 12 of CGST Act?

Time of Supply depends upon whether Invoice issued within prescribed time or not

 Invoice Issued Within Prescribed Time Invoice Not Issued Within Prescribed Time Other Cases  (Cases Where Invoice not to be Issued ) Time of Supply is Date of Invoice Date of Receipt of Payment Whichever is earlier Time of Supply is Date of Providing Service Date of Receipt of Payment Whichever is earlier Time of Supply is Date of Receipt of Service in Books of Account as shown by Recipient of Service(Service Receiver)

Example:-

Suppose Service Provided on 10 May.

What is Last Date to Issue Invoice

Suppose Invoice issued on 1 June but payment Received by NEFT on 18 Aug.What is Time of Supply of Service

Suppose Invoice issued on 15 June but payment Received by NEFT on 18 Aug.What is Time of Supply of Service

Example:-

Suppose Sales Service Provided for Rs 1000+12% CGST+6% SGST

Total Amount Due =1000+120+60=1180

Customer paid  lumpsome 1100 .  He asks to adjust balance 20 in next bill

Does the company need to pay tax on this 20 Extra Received?

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#### CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.