Time, place, and value of supply are important concepts under the GST system. The time of supply determines when tax must be paid and refers to the earliest date that goods or services are supplied. The place of supply generally refers to the location of the recipient. Special rules determine the place for certain types of services. Value of supply means the money collected from the recipient but if parties are related, the transaction value between unrelated parties in the normal course of business is used to ensure proper tax is paid.

1. Time of Supply

2. Time, Place, and Value of Supply Under GST(Goods
Or Services Tax)
• The GST is a taxation system that is based on destination/consumption,
where the tax is imposed on the supply of goods or services which are
taxable under the GST regulations. Here, the type of supply for the goods
or services includes several crucial things, such as if the goods or services
supplied are taxable, the rate of GST charged, and much more. Here, you
will be learning in a detailed explanation about Time, Place, and Value of
Supply of Goods or Services in GST.
• Generally, Goods and Services Tax (GST) is classified into three types,
namely State Goods and Services Tax (SGST), Central Goods and
Services Tax (CGST) and the third being Integrated Goods and Services
Tax (IGST). While both SGST and CGST are taxes that are charged in the
invoice for intra-state transactions, IGST, on the other hand, is charged in
the invoice for inter-state transactions by registered taxpayers.

3. Significance of Time, Place, and Supply of
goods Or services under the GST act
• Under the Goods and Services Tax (GST) law, time on the supply of
goods and services are significant for any business in contrast to
taxation. Time is vital for point of tax that when the liability to pay tax
on goods and services will occur. In the same way, valuation on what
value the tax shall be levied by the government. For valuing any
goods, what to incorporate and to not include is a subject of in-depth
argument. All this has been incorporated in Sections 12, 13, 14 and
15 of the MGL. The main basis of valuation is transaction value,
where the parties aren’t related. However, important is when parties
are related, what value shall be applied and the way an equivalent
shall be considered in determination useful of supply of products and
services rule,

4. 1. Time of Supply
• The time of supply refers to the point in time when goods or
services are assumed to be supplied to the purchaser. By
knowing the time of supply of the goods or services, the seller
can easily identify the due date for payment of taxes. The
purchaser is required to pay SGST/CGST or IGST at the time of
supply of the goods or services. The goods or services have a
separate level by which their time of supply is known.
•

5. (i) Time of Supply of Goods Or Services In Gst
• The liability to pay SGST/CGST takes place at the time of
supply of goods only. Here, the earliest time of supply of goods
is basically considered when the following criteria are met:
• When the goods are moved, if needed
• Goods are made available to the purchaser when goods are not
moved
• At the time of issuance of the invoice
• At the time of receipt of payment
• When the recipient shows the receipt of goods in his/her books
of accounts

6. • When there is continuous supply of goods or services, the time of supply shall be:
• At the successive statement of account or payment with regard to the contract
• Date of issue of invoice or receipt of payment, whichever is earlier
• The time of supply, in the case of reverse charge shall be earliest of the following:
• The date of receipt of goods or services
• The date on which payment is made
• The date of receipt of the invoice
• The date of transaction(s) debited in the books of accounts

7. • In the event when goods are sent based on approval, then the
time of supply shall be either at the time of approval or six
months from the date of removable, whichever is the earliest.
• In the event when it may not be possible to establish the time of
supply as mentioned above, then:
• The date of periodical return must be filed
• The date on which SGST/CGST is paid

8. (ii) Time of Supply of good or Services in Gst
• The liability to pay SGST/CGST takes place at the time of the supply of
services only. Here, the earliest time of supply of services is basically
considered when the following criteria are met:
• On the date of issue of invoice or receipt of payment, whichever is the
earliest. This is in case of the issuance of the invoice at the scheduled
time.
• On the date of completion of services or receipt of payment, whichever is
the earliest. This is in the case when the is not raised at the scheduled
time.
• The date that is shown by the recipient for the receipt of services on
his/her books of accounts. This is in the case when the above-mentioned
criteria do not apply.

9. (ii) Supply of Services
• Basically, the place of supply of services is actually the location of the service recipient.
So, in the event where the services are rendered to a dealer who is not registered under
GST and that his/her location is not available, then the location of the service provider will
be the place of the supply of service.
• Special provisions have been made to determine the place of supply for the following
services:
• Services related to immovable property
• Restaurant services
• Admission to events
• Transportation of goods and passengers
• Telecom services
• Banking, Financial and Insurance services
• However, in the event of services that are related to immovable property, the location of
the property is the place of supply of services.

10. 3. Value of Supply of Goods or Services In GST
• The value of supply of goods or services in GST generally implies the
money which a seller may wish to collect from the goods and services that
have been supplied to the recipient. Thus, the amount collected by the
seller from the purchaser is what is called the value of the supply of goods
or services.
• However, where a group of persons is related and a fair value may not be
charged, or that the transaction may take place as barter or an exchange
system, the GST Act orders that the value on which GST is charged must
therefore be its ‘transactional value’.
• This transactional value is the value at which a group of persons, who are
not related, may conduct dealings in the normal line of business. Also, it
makes sure that GST is levied and collected in the right way, even though
the total value for supply of goods or services may not have been paid.