TIME OF SUPPLY

Time of supply means Point of Taxation. Time of Supply let us know the date on which the charging event has occurred.

Separate provisions have been made to determine time of supply of goods and time of supply of services.
Default Rule for time of supply of goods:

Earliest of the following:

1. Date of issue of invoice by the supplier. If invoice not issued then the last day on which supplier is legally bound to issue the invoice
2. Date on which the supplier receives the payment.

Date of receipt of payment means earlier of the following:

1. The date on which payment is entered in his books of account or
2. The date on which payment is credited to his books of account.

Default rule for time of supply of goods under RCM:

Time of supply when tax is required to be paid under Reverse Charge Mechanism is earliest of the following:

1. Date of receipt of goods
2. Date on which the payment is entered in the books of account of the recipient or the date on which payment is debited in his books of account whichever is earlier.
3. Date immediately following 30 days from the date of issue of invoice by the supplier.

Where clauses (i), (ii) & (iii) do not apply, place of supply would be the date of entry in the books of account of the recipient of supply.
Default rule for time of supply of services:

Time of supply of services is earliest of the following:

1. Date of issue of invoice by the supplier (if issued within 30 days from the date of provision of service) or the date of receipt of payment, whichever is earlier or
2. Date of provision of service (in invoice is not issued within 30 days from the date of provision of service) or
3. Date of which recipient shows the receipt of service in his books of accounts (This clause is applicable when (i) & (ii) above do not apply).

Default rule for time of supply of services under RCM:

Time of supply where tax is to be on supply of services under Reverse Charge Mechanism is earliest of the following:

1. The date of payment entered in the books of account of the recipient or the date on which payment is debited in his bank account, whichever is earlier; or
2. The date immediately following sixty days from the date of issue of invoice.

Where clauses (i) & (ii) do not apply, place of supply would be the date of entry in the books of account of the recipient of supply.

Time of supply in case of supply of vouchers:

In case of supply of vouchers, the time of supply is different for single purpose or general-purpose vouchers.

Time of supply for single purpose voucher (where supply is identifiable at the time of issuance of voucher) is the date of issue of voucher. In all other cases, the time of supply is the date of redemption of voucher.

Time of supply – Supply by Associated Enterprises located outside India:

Date of entry in the books of account of the recipient or the date of payment, whichever is earlier.

Time of supply – Addition in value by way of interest, late-fee, penalty etc.:

Time of supply related to addition in value of supply by way of interest, late-fee, penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.

Time of supply (Residual Provisions:

1. Due date of filing of return, in case where periodical return has to be filed.
2. Date of payment of tax in all other cases.