PPT on Time of Supply Content - Time of supply for goods and services including RCM, the due date for issue of invoice, and change in the rate of tax with illustrations.

2. Time of Supply
11TH MARCH 2020
MAHINDRA ARCADE, MANGALORE
PRESENTED BY NISHIT D’SOUZA
CHAIRED BY CA. AKSHAY SHETTY
KAMATH & RAU
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3. Supply
Furtherance of
business
Consideration
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4. Why Time of Supply?
 As per 12(1) of the CGST Act, 2017
The liability to tax on goods shall arise at the time of supply, as determined in
accordance with the provisions of this section.
 As per 13(1) of the CGST Act, 2017
The liability to tax on services shall arise at the time of supply, as determined in
accordance with the provisions of this section.
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5. Time of Supply – Goods & Services
 Sec 12 of the CGST Act, 2017 deals with time of supply with respect to goods.
 Sec 13 of the CGST Act, 2017 deals with time of supply with respect to services.
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6. Time of Supply of Goods - Sec 12(2)
Actual date of issue of invoice by the supplier
Last(Due) date on which the supplier is required to issue invoice as per Sec 31(1) of the CGST Act, 2017
Date of receipt of payment entered in the books of accounts by the supplier
Date of receipt of payment credited to the supplier’s bank account
The time of supply of goods shall be earliest of the following dates :
Time of supply for all suppliers (excluding Composition supplier) will be the time of issue of invoice.
This amendment (Notification no.66/2017 CT dated 15.11.17) has become effective from 15.11.17
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7. Due date for issue of invoice
 Supply involves movement: Time of removal of goods for supply
 Continuous Supply: Date of issue of statement
 Sale on approval basis: Earlier of time at which it becomes known
that the supply has taken place OR 6 months from date of removal
 Other cases: Delivery of goods/ making available to the recipient or
 Notified categories of supplies: Time to be specified by Rules
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8. Santa Banta Time – Sec12(2)
Section 12(2) Invoice
date
Invoice due
date
Payment
entry in
supplier's
books
Credit in
bank
account
Time of
supply
1 Invoice raised before
removal 10-Oct-19 20-Oct-19 26-Oct-19 30-Oct-19
2 Advance received 30-Oct-19 20-Oct-19 10-Oct-19 30-Oct-19
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10-Oct-19
20-Oct-19

9. • Date of issue of invoice or payment*,
whichever is earlier
If invoice issued within prescribed time
u/s 31(2) - 30 days (45 days in case of
Banking, Insurance, Financial Institution
or NBFC company)
• Date of provision of service or
payment*, whichever is earlier
If invoice not issued within 30 days
(45 days in case of Banking, Insurance,
Financial Institution or NBFC company)
• Date on which recipient shows receipt
of services in his books of accountsIf both cases do not apply
Time of Supply of Services - Sec 13(2)
*Date of payment shall be the date on which the payment is recorded in the books or payment reflected
the supplier’s bank account, whichever is earlier
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10.  Provided that where the supplier of taxable service receives an
amount up to Rs.1,000/- in excess of the amount indicated in the
tax invoice, the time of supply to the extent of such excess amount
shall, at the option of the said supplier, be the date of issue of
invoice relating to such excess amount
Sec 13(2) - Contd.
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11. Santa Banta Time– Sec 13(2)
Particulars Invoice
date
Invoice due
date
Payment
entry in
supplier's
books
Credit in
bank
account
Time of
supply
1 Invoice raised before
completion of service
12-Oct-19 20-Oct-19 26-Oct-19 30-Oct-19
2 Advance received 30-Oct-19 20-Oct-19 11-Oct-19 30-Oct-19
3 Delayed issue of
invoice
26-Dec-19 20-Oct-19 16-Nov-19 28-Jan-020
1
0
12-Oct-19
11-Oct-19
20-Sept-19

12. Date of receipt of goods
Date of payment in the books of the recipient or date of debit in his
bank account, whichever is earlier
Date immediately following 30 days from date of issue of invoice by the
supplier
Time of Supply of Goods under RCM – Sec 12(3)
Time of supply of goods under RCM shall be the earliest of the following:
Provided where it is not possible to determine TOS using the above methods, TOS shall be the date on which
the entry is made in the books of accounts of the recipient
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13. Santa Banta Time – Sec12(3)
Reverse charge
Section 12(3)
Date of
invoice
issued by
supplier
Removal of
goods
Receipt of
goods
Payment by
recipient
Time of
supply
1 General 31-Oct-19 31-Oct-19 20-Nov-19 30-Nov-19
2 Advance paid 31-Oct-19 31-Oct-19 20-Nov-19 05-Nov-19
3
No payment made for
the supply
31-Oct-19 30-Dec-19 05-Jan-020 -
20-Nov-19
05-Nov-19
30-Nov-19
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14. Earlier of the
following
Date of payment by the
recipient
Date immediately
following 60 days from
date of issue of invoice
by the supplier
Time of Supply of services under RCM – Sec 13(3)
1. Provided where it is not possible to determine TOS using the above methods, TOS shall be the date on the entry is made
in the books of accounts of the recipient.
2. Provided in case of supply by an Associated Enterprises, where the supplier of service is located outside India, the TOS
shall be the date of entry in the books or date of payment, whichever is earlier
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15. Santa Banta Time – Sec 13(3)
Reverse charge
Section 13(3)
Date of
invoice
issued by
supplier
Date of
completion
of service
Payment by
recipient
Entry of
receipt of
services in
recipient's
books
Time of
supply
1 General 31-Oct-19 31-Oct-19 20-Nov-19 30-Nov-19
2 Advance paid 31-Oct-19 31-Oct-19 05-Nov-19 31-Oct-19
3 Delay in payment (Max.
60 days from date of
invoice)
31-Oct-19 31-Oct-19 10-Jan-19 31-Oct-19
4 Service received from
associated enterprise
located outside India
(No time extension
allowed)
31-Oct-19 30-Nov-19 05-Apr-020 31-Mar-020
5 Service by unregistered
person, no payment
made
- 30-Nov-19 - 05-Dec-19
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20-Nov-19
05-Nov-19
31-Dec-19
31-Mar-020
05-Dec-19

16. Time of Supply of Vouchers – Sec 12(4) & 13(4)
Time of supply in case of supply
of voucher–
Date of issue – If supply is
identifiable at the point of issue of
voucher
Date of redemption of voucher –
Other cases
Note : Voucher can be for goods or services [As defined in Sec 2(118) of CGST Act,2017]
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17. Santa Banta Time – Sec 12(4) & 13(4)
Issue of vouchers
Section 13(4) [or Section
12(4)]
First service/
delivery of
goods
Issue of
voucher
Redemption of
voucher
Last date for
acceptance of
voucher
Time of supply
1
Voucher issued to a recipient
after supply of a service [or
specific goods], for the same
service - valid for 1 year
01-Nov-19 01-Nov-19 14-Dec-19 30-Oct-020
2
Voucher issued to a recipient
of machinery along at the
time of delivery, for availing
repair services [or specific
goods] worth Rs. 5,000 - valid
for 1 year
01-Nov-19 01-Nov-19 14-Dec-19 30-Oct-020
3
Voucher issued to a recipient
after supply of a service, for
any other services or goods
across India, - valid for 1 year
01-Nov-19 01-Nov-19 14-Dec-19 30-Oct-020
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01-Nov-19
01-Nov-19
14-Dec-19

18. Residual Provision – Sec 12(5) / 13(5)
Where it is not possible to determine the time of
supply under any of the circumstances
discussed, it shall be determined as:
Due date for filing of such return –
If periodical return has to be filed
Date on which the Tax is paid –
Other cases
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19. Time of Supply of Goods / Services - Value
Addition – Sec 12(6) / 13(6)
Time of supply
for value
addition by
way of
Interest,
Late Fees,
Penalty
For Delayed
payment of
Consideration
shall be
Date on which
the supplier
receives such
addition in
value
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20. Change in rate of tax – Sec 14
 In case the goods or services or both have been supplied before the change in
rate of tax
• TOS shall be the date of receipt of payment or
the date of issue of invoice, whichever is earlier
Where the invoice is issued and
payment is received after the change in
rate of tax,
• TOS shall be the date of issue of invoiceWhere the invoice is issued prior to the
change in rate of tax but payment is
received after such change,
• TOS Shall be the date of receipt of paymentWhere the payment is received before
the change in rate of tax but the invoice
is issued after such change
Hint: It’s earlier of Date of issue of invoice or Date of receipt of payment
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21.  In case the goods or services or both have been supplied after the change in rate
of tax
Change in rate of tax – Sec 14 (Contd.)
• TOS Shall be the date of receipt of paymentWhere the payment is received after
the change in rate of tax but the
invoice been issued prior to the
change in rate of tax,
• TOS shall be date of receipt of payment or
date of issue of invoice, whichever is earlier
Where the invoice has been issued
and payment is received before the
change in rate of tax,
• TOS shall be the date of issue of invoice.Where the invoice has been issued
after the change in rate of tax but
payment has been received before
such change
Hint : Old rates will be applicable only when the issue of invoice and receipt of payment are before the change in rate of tax
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22. Santa Banta Bye Bye – Sec 14
Time of supply
Date of supply of
goods or services
Date of
invoice
Date of
receipt of
payment
Time of supply Rate of tax
(1) (2) (3) (4) (5)
Before After After Earlier of (2) and (3) New
Before Before After (2) Old
Before After Before (3) Old
After Before After (3) New
After Before Before Earlier of (2) and (3) Old
After After Before (2) New
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23. Presented By – Nishit D’Souza
Mobile No - 9591443103