In this case, time of Supply of Goods and Services is Relevant
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Time of Supply in case of Goods in Reverse Charge |
Time of Supply in case of Service in Reverse Charge |
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It is the earlier of
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It is the earlier of
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Meaning of Date of payment
It means Date of Receipt of Amount by Recipient in Bank Account
Or
Date of Debit in Books by Recipient ..Whichever is earlier
Example 1
Time of Supply in case of Goods in Reverse Charge
Suppose Sales Made by A to B of Rs 100000
A is Unregistered but B is Registered
Whether Normal Charge or Reverse Charge Applicable
View answer
Reverse Charge is applicable as Seller is Unregistered and Buyer is Registered
Suppose Invoice Issued by A on 29 April
Goods were received by B on 2 May along with the Invoice
Payment made on 15 May by cheque
A received cheque on 16 th May and it was cleared on 19 may
What is Date of payment of Goods
View answer
It means
Date of Receipt of Amount by Recipient in Bank Account:-19 May
Or
Date of Debit in Books by Recipient: -16 May
Whichever is earlier i.e. 16 May
What is time of supply of goods?
View answer
It is the earlier of
- Date of Payment: -16 May
- 31 Days of Invoice Date: - 30 May
- Date of Receipt of Goods: -2 May
Hence time of Supply is 2 May
When is GST Challan and Return to be deposited in this case
View answer
Since Time of Supply is 2 MAY
It will be shown in Tax Computation of May Month
Challan and Return for the same will be deposited in June
-ea-
Example 2
Time of Supply in case of Services in Reverse Charge
Suppose Consultancy Service for the month of June provided by a CA RK Jha and Associates Bill Issued on 10 July for Rs 20000
RK Jha is a Small Service provider having less turnover and hence not registered in GST
Payment for the same is made by Infosys Ltd on 15 September by cheque
CA RK Jha received cheque on 16 th September and it was cleared on 19 September
Whether Normal Charge or Reverse Charge Applicable
-a-
Reverse Charge is applicable as Service Provider is Unregistered and Service Receiver is Registered
What is Date of payment of Service
View answer
It means
Date of Receipt of Amount by Recipient in Bank Account: -19 September
Or
Date of Debit in Books by Recipient: -16 September
Whichever is earlier i.e. 16 September
What is time of supply of Service?
View answer
It is the earlier of
- Date of Payment: -16 September
- 61 Days of Invoice Date: - 61 days of 10 July that is 9 September
Hence time of Supply is 9 September
When is GST Challan and Return to be deposited in this case
View answer
Since Time of Supply is 8 September
It will be shown in Tax Computation of September
Challan and Return for the same will be deposited in October