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 Time of Supply is Time of Supply is 1 Date of Invoice 1.Date of Providing Service 2 Date of Receipt of Payment 2. Date of Receipt of Payment Whichever is earlier Whichever is earlier
Q1
Suppose Service Provided on 10 May.
Suppose Invoice issued on 1 June but payment Received by NEFT on 18 Aug.What is Time of Supply of Service
ANSWER
| Invoice Issued Within Prescribed Time | |
| Time of Supply is | |
| 1 Date of Invoice | 01-Jun |
| 2 Date of Receipt of Payment | 18-Aug |
| Whichever is earlier | 01-Jun |
Q2
Suppose Service Provided on 10 May.
Suppose Invoice issued on 15 June but payment Received by NEFT on 18 Aug.What is Time of Supply of Service
ANSWER
| Invoice Not Issued Within Prescribed Time | |
| Time of Supply is | |
| 1.Date of Providing Service | 10-May |
| 2. Date of Receipt of Payment | 18-Aug |
| Whichever is earlier | 10-May |
Q3
Suppose payment received in advance on 19 April which was cleared on 21 April
Service provided later on 10 May
Invoice issued on 1 June
What is Time of Supply of Service
ANSWER
| Invoice Issued Within Prescribed Time | |
| Time of Supply is | |
| 1 Date of Invoice | 01-Jun |
| 2 Date of Receipt of Payment | 19-Apr |
| Whichever is earlier | 19-Apr |
Q4
Suppose 40% payment received in advance on 19 April by cheque which was cleared on 21 April
Service provided later on 10 May
Invoice issued on 1 June
Balance Payment on 19 September by cheque
What is Time of Supply of Service
ANSWER
| Invoice Issued Within Prescribed Time | 40% | 60% |
| Time of Supply is | ||
| 1 Date of Invoice | 01-Jun | 01-Jun |
| 2 Date of Receipt of Payment | 19-Apr | 19-Sep |
| Whichever is earlier | 19-Apr | 01-Jun |
