Why is Time of Supply Important?
It helps in Determining when GST is payable
Suppose Time of Supply is of AUGUST, it means it is GST Liability of Aug to be paid in September
Example 1
Suppose Goods Sold to Customer on 10 May but received by Customer on 11 May. The Bill issued to Customer on 15 May.
Amount is received from customer on 20 May by cheque which was cleared on 22 MayCalcuate Time of Supply
Calculate Time of Supply
| Particular | Date |
| Date of Invoice | |
| Last Date of Issue of Invoice | |
| Date of Payment | |
| Time of Supply(Earlier of 3) |
Answer
| Particular | Date |
| Date of Invoice | 15-May |
| Last Date of Issue of Invoice | 10-May |
| Date of Payment | 20-May |
| Time of Supply(Earlier of 3) | 10-May |
Example 2 :- Amount Received in Advance
Suppose Company entered into a Contract to Sell goods for Rs 100000+ 2.5% CGST+2.5% SGST
It received full payment in advance on 20 July by NEFT
Goods taken by Customer from shop on 18 September and Invoice issued the Same Date
Calculate Time of Supply
| Particular | Date |
| Date of Invoice | |
| Last Date of Issue of Invoice | |
| Date of Payment | |
| Time of Supply(Earlier of 3) |
Answer
| Particular | Date |
| Date of Invoice | 18-Sep |
| Last Date of Issue of Invoice | 18-Sep |
| Date of Payment | 20-Jul |
| Time of Supply(Earlier of 3) | 20-Jul |
Example 3 :- Partial Amount Received in Advance
Suppose Company entered into a Contract to Sell goods for Rs 100000+ 2.5% CGST+2.5% SGST
It received 20% payment in advance on 20 July
Goods taken by Customer from shop on 18 September and Invoice issued Same Date
Balance Payment made on 11 November
| Particular | 20% | 80% |
| Date of Invoice | ||
| Last Date of Issue of Invoice | ||
| Date of Payment | ||
| Time of Supply(Earlier of 3) |
Answer
| Particular | 20% | 80% |
| Date of Invoice | 18-Sep | 18-Sep |
| Last Date of Issue of Invoice | 18-Sep | 18-Sep |
| Date of Payment | 20-Jul | 11-Nov |
| Time of Supply(Earlier of 3) | 20-Jul | 18-Sep |
