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

Time of Supply is

Earlier of

Date of Invoice

Last Date of Issue of Invoice

Date of Payment                                      this is removed from 15 Nov 2017 Onward

 

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 May

Calculate Time of Supply

Particular Date
Date of Invoice 15-May
Last Date of Issue of Invoice 10-May
Date of Payment  
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+ 3% CGST+2% SGST

It received full payment in advance on 20 July by NEFT

Goods taken by Customer from shop on 18 September and Invoice issued Same Date 

Calculate Time of Supply

Particular Date
Date of Invoice 18-Sep
Last Date of Issue of Invoice 18-Sep
Date of Payment  
Time of Supply(Earlier of 3) 20-July

 


Example 3 :- Partial Amount Received in Advance

Suppose Company entered into a Contract to Sell goods for Rs 100000+ 3% CGST+2% 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 18-Sep 18-Sep
Last Date of Issue of Invoice 18-Sep 18-Sep
Date of Payment    
Time of Supply(Earlier of 3) 18-Sep 18-Sep

  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 .