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

 

  1. GST - Goods and Services Tax, India
  2. GST Computation & Accounting
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .