Here you will get how GST will impact you? which are the taxable events in GST regimes, what would be the time of supply in GST regime and many more things. All in all, this is the complete guide to GST.

1. Time of Supply
CA Vinod Jain
Partner, M/s Vinod Kumar & Associates, Chartered Accountants
+91 98110 40004 | vinodjain@inmacs.com | www.vinodjainca.com

2. Taxable Event
• The event of taxability is Supply of Goods
and/or Services
• Hence its important to evaluate that under the
GST Regime the time when the Liability to
discharge the obligation of payment of tax shall
arise.

3. Time of Supply in Present and GST Regime
Existing Laws
Legislation Taxable Event Time
Excise Duty
on Goods
Goods manufactured and
removed from factory
Time of Removal
Service Tax Rendering of Services Earliest of:
• Payment
• Invoice
• Completion of
Service
VAT / CST Sale of Goods / Deemed Transfer of
Property in Goods
GST Regime
• Under GST it will be paid on
supply as defined under
section 7 of CGST Act, 2017
(i.e. Under GST Regime,
taxable event will be ‘supply’.)
• Time of Supply – Earliest of
• Payment
• Invoice
• Last Date for raising invoice
as per prescribed rules.

4. 4
•Section 2(32) – Continues Supply of Goods
•Section 2(33) – Continues Supply of Services
•Section 2(93) – Recipient
•Section 2(96) – Removal
•Section 2(98) – Reverse Charge
•Section 2(105) – Supplier
Section 2
Section 31 – Tax Invoice
Section 12 – Time of Supply of Goods
Section 13 – Time of Supply of Services
Section 14 – Change in rate of Tax

5. 5
“continuous supply of goods” means a supply of goods
which is provided, or agreed to be provided, continuously
or on recurrent basis, under a contract, whether or not by
means of a wire, cable, pipeline or other conduit, and for
which the supplier invoices the recipient on a regular or
periodic basis and includes supply of such goods as the
government may, subject to such conditions, as it may be
notified, specify.

6. 6
“continuous supply of Service” means a supply of services
which is provided, or agreed to be provided, continuously or
on recurrent basis, under a contract, for a period exceeding
three months with periodic payment obligations and includes
supply of such service as the Central or a State Government
may, whether or not subject to any condition, by notification,
specify;

7. 7
(a) where a consideration is payable for the supply of goods and/or services, the person
who is liable to pay that consideration,
(b) where no consideration is payable for the supply of goods, the person to whom the
goods are delivered or made available, or to whom possession or use of the goods is given
or made available, and
(c) where no consideration is payable for the supply of a service, the person to whom
the service is rendered,
and any reference to a person to whom a supply is made shall be construed as a
reference to the recipient of the supply and shall also include an agent acting as such on
behalf of the recipient in relation to the goods and/or services supplied.

8. 8
“removal” in relation to goods, means-
(a) Despatch of goods for delivery by the supplier thereof or by
any other person acting on behalf of such supplier, or
(b) Collection of the goods by the recipient thereof or by any
other person acting on behalf of such recipient.

9. 9
“reverse charge’’ means the liability to pay tax by the recipient
of supply of goods or services or both instead of the supplier of
such goods or services or both under sub-section (3)/(4) of
section 9 and sub sec (3)/(4) of section 5 of IGST Act.

10. 10
“supplier” in relation to any goods and/or services shall mean
the person supplying the said goods and/or services and shall
include an agent acting as such on behalf of such supplier in
relation to the goods and/or services supplied;

11. 11

12. 12
Invoice Shall be issued before or at the time of
Removal of Goods for
Supply to the recipient,
where movement is
involved; or
Delivery of goods or
making available to the
recipient, in any other case
Making Available to the recipient means: -
• Means goods are placed at the disposal of recipient.
• Physically not capable of being moved
• Supplied in assembled or installed form.
• Supply to his agent or his principal.

13. 13
A registered person supplying taxable services shall
issue tax invoice before or after the provision of service
• But within prescribed period
• Govt. may on the recommendations of council, by notification
and subject to such conditions as may be mentioned therein,
specifies the categories of services in respect of which-
(a)Any other document issued in relation to the supply shall
be deemed to be tax invoice.
(b)Tax invoice may not be issued.

14. 14
In case of
Continuous supply of goods
Where successive statement of accounts or payment are
involved, Invoice shall be issued before or at the time
of issuance of each such statement or at the time of
receipt of each such payment.

15. 15
where the due date of
payment is ascertainable
from the contract
the invoice shall be
issued on or before the
due date of payment
where the due date of
payment is not
ascertainable from the
contract
the invoice shall be
issued before or at the
time when the supplier
of service receives the
payment
where the payment is
linked to the completion
of an event
the invoice shall be
issued on or before the
date of completion of
that event
In case of Continuous supply of services

16. 16
In a case where the supply of services ceases under a contract before the
completion of the supply
the invoice shall be issued at the time when the supply ceases and such invoice shall
be issued to the extent of the supply effected before such cessation.

17. 17
Notwithstanding anything contained in sub-section (1),
where the goods being sent or taken on approval for sale
or return are removed before the supply takes place
Invoice shall be issued at the earliest of the following:-
• before or at the time of supply
• 6 months from the date of removal

18. 18

19. 19
Where not determinable as per above, TOS shall be date of entry
in books of account of recipient
• Normal (2)
• Earliest of the Following :
• Date of issue of Invoice by the supplier; or
• Last date on which he is required to issue the invoice with respect to supply; or
• Date of receipt of the payment with respect to supply
If excess receive up to Rs. 1,000/, Time of supply at the option of supplier, be the date of Invoice.
• Reverse Charge (3)
• Earliest of the following :
• Date of Receipt of Goods
• Date on which Payment is made
• Date immediately following 30 days of invoice or any other document

20. 20
Vouchers (4)
In case of supply of vouchers by supplier, the time of supply shall be-
• If Supply identifiable at that point – Date of Issue of voucher
• In other cases – Date of redemption
Residual (5)
Where it is not possible to determine the time of supply under the provisions of sub-section (2)
or sub-section (3) or sub-section (4), the time of supply shall-
• Where periodical return has to be filed – Date when such return is to be filed
• In any other case – Date on which tax is paid
Addition in value of supply by way of interest, late fee or penalty for delay (6)
• The time of supply to the extent it relates to an addition in value of supply by way of
interest, late fee or penalty for delay payment of any consideration shall be the date on
which the supplier receives such addition in value.

21. 21

22. 22
Supply of Services by a supplier in case of forward charge-Sec 13(2):
Case-1: When Invoice is issued within period prescribed:
Sec 13(2) The time of supply of services shall be earlier of:
• date of issue of invoice by the supplier, or
• the date of receipt of payment.
Case-2: When Invoice is not issued within period prescribed:
Sec 13(2) The time of supply of services shall be earlier :
• date of provision of service, or
• the date of receipt of payment.
Proviso to Section 13(2) provides that-
Where the supplier of taxable services receives an amount up to Rs. 1,000/- in excess of the amount
indicated in tax invoice, the time of supply to the extent of such excess amount shall be the date of issue
of invoice in respect of such excess amount at the option of the said supplier.
Explanation 2.- For the purpose of Sec
13(2), “the date of receipt of payment”
shall be the earlier of the following dates:
• the date on which the payment is
entered in his books of account; or
• the date on which the payment is
credited to his bank account.

23. 23
Reverse charge in case of Services-Sec 13(3):
In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply
shall be the earliest of the following dates, namely:-
(a) the date of payment; or
(b) the date immediately following 60 days from the date of issue of invoice or any other document, by whatever
name called, in lieu thereof by the supplier:
First Proviso to Section 13(3) provides that-
Where it is not possible to determine the time of supply under clause (a) or clause (b) or clause (c), the time of
supply shall be the date of entry in the books of account of recipient of supply.
Second Proviso to Section 13(3) provides that-
In case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply
shall be-
(a) the date of entry in the books of account of recipient of supply or
(b) the date of payment, whichever is earlier.

24. 24
Supply of vouchers by a supplier-Sec 13(4):
In case of supply of vouchers by supplier, the time of supply shall be-
(a) the date of issue of voucher, if supply is identifiable at that point; or
(b) the date of redemption of voucher, in all cases.
Residual -Sec 13(5):
Where it is not possible to determine the time of supply under the provisions of sub-section (2) or sub-section (3)
or sub-section (4), the time of supply shall-
(a)In a case where a periodical return has to be filed, be the date on which such return is to be filled, or
(b)In any other case, be the date on which tax is paid.
Addition in value of supply by way of interest, late fee or penalty for delay-Sec 13(6):
The time of supply to the extent it relates to an addition in value of supply by way of interest, late fee or penalty for
delay payment of any consideration shall be the date on which the supplier receives such addition in value.

25. Forward Charge u/s 12(2) & 13(2)
GOODS SERVICES
Earliest of the following:
(a) Date of issuance of invoice by the supplier;
(b) Last date on which supplier is required to
issue invoice ;
(c) Date of receipt of payment/ advance by
supplier (earliest of date of entry in accounts
books or credit date in bank)
Earliest of the following:
(a) Date of issuance of invoice by the supplier;
(b) Date of provision of services when invoice has
not been raised within the time prescribed;
(c) Date of receipt of payment by supplier (earliest
of date of entry in accounts books or credit date
in bank a/c)

26. Reverse Charge u/s 12(3) & 13(3)
GOODS SERVICES
Earliest of the following:
(a) Date of receipt of goods; or
(b) Date on which payment is made (earliest of
credit date in accounts books or debit date
in bank a/c); or
(c) Date immediately following 30 days from
the date of issue of invoice by supplier.
If not possible: Entry Date in books of recipient
Earliest of the following:
(a) Date on which payment is made (earliest of
credit date in accounts books or debit date in
bank a/c); or
(b) Date immediately following 60 days from the
date of issue of invoice by supplier.
If not possible: Date of Entry in accounts books of recipient

27. 27

28. 28
(a) In case of goods or services or both have been supplied before the change in rate of tax,-
(i) Where the invoice for the same has been issued and payment is also received after the change in rate of tax,
the time of supply shall be:
 the date of receipt of payment or
 the date of issue of invoice, whichever is earlier;
(i) Where the invoice has been issued prior to the change in rate of tax but payment is received after the
change in rate of tax, the time of supply shall be the date of invoice; or
(ii) Where the payment has been received before the change in rate of tax but the invoice is issued after the
change in rate of tax, the time of supply shall be the date of receipt of payment;

29. 29
(b) In case the goods or services or both have been supplied after the change in rate of tax,-
(i) Where the payment is received after the change in rate of tax but the invoice has been issued prior to the
change in rate of tax, the time of supply shall be the date of receipt of payment; or
(ii) Where invoice has been issued and payment is received before the change in rate of tax, the time of supply
shall be
 the date of receipt of payment or
 date of issue of invoice, whichever is earlier;
(iii) Where the invoice has been issued after the change in rate of tax but the payment is received before the
change in rate of tax, the time of supply shall be the date of issue of invoice.
Proviso to Section 14(2)of CGST Act, 2017 provides that-
•The date of receipt of payment shall be the date of credit in the bank account is after four working days from the
date of change in the rate of tax.
Explanation.- For the purpose of this section, “the date of receipt of payment” shall be-
 the date on which the payment is entered in the books of account of supplier or
the date on which the payment is credited to his bank account, whichever is earlier.

30. 30
S. No. Date of Service Date of Invoice Date of Payment Time of Supply
1. Before CERT After CERT After CERT Date of Issue of Invoice or receipt,
whichever is earlier
2. Before CERT Before CERT After CERT Date of issue of Invoice
3. Before CERT After CERT Before CERT Date of Payment
4. After CERT Before CERT After CERT Date of Payment
5. After CERT Before CERT Before CERT Date of Issue of Invoice or receipt,
whichever is earlier
6. After CERT After CERT Before CERT Date of issue of Invoice

31. 31
Date of Entry in Books
of Accounts
Date of Credit in Bank
Normal
Course
Earliest of
If date of credit in
Bank, is after 4
working days from the
date of change in rate
of tax
Change in
rate of Tax

32. 32

33. 33
Supply of Goods/ Services made on or after
appointed day in pursuance of a contract enter
into prior appointment day
GST

34. 34
Tax in respect of
Taxable Goods
Under Earlier
Law (VAT)
To the extent of Tax levied
(POT) on such goods under
the VAT Act
No GST

35. 35
Tax in respect of
Taxable Service
Under Earlier
Law (Service
Tax)
To the extent of Tax levied
(POT) on such service under
the Chapter V of Finance Act,
1994
No GST

36. 36
Import of Services or inter state supply made after appointed date
regardless of whether the transactions for such import of services had
been initiated before the appointed day:
Full Tax Paid in
earlier Law
No GST
Partial Tax Paid
in earlier Law
GST payable on
balance amount
No tax paid in
earlier law
GST payable

37. Disclaimer: While every care has been taken to ensure accuracy of this presentation, Vinod Kumar & Associates shall not assume any liability/ responsibility for
any errors that might creep in. The material herein does not constitute/ substitute professional advice that may be required before acting on any matter.