Time of supply under GST means the time when goods/services are considered supplied. Taxpayers have to pay CGST/SGST or IGST at the time of supply. While place of supply helps to determine the levy (CGST/SGST/IGST), time of supply helps to find out the due date for payment of taxes.

A. Time of Supply for Goods

The time of supply of goods is the earlier of the following dates –

(a) The date of issuing invoice (or the last day to issue the invoice);

OR

(b) The date of receipt of payment.

If the supplier receives an amount up to Rs. 1000 in excess of the invoice amount, the supply time for the extra amount will be the date of issue of invoice (at the option of the supplier).

For (b) – the date of receipt of payment will be earlier of –

1. The date on which he entered the payment in his books;

OR 

2. The date on which the payment is credited to his bank account.

GST Return Filing, Time of Supply

B. Time of Supply for Services

The time of supply of services is the earlier of the following dates –

(a) The date of issuing invoice (or the last day by which invoice should have been issued)

  OR

(b) The date of receipt of payment

If the supplier of taxable service receives an amount up to Rs. 1000 rupees in excess of invoice amount, the supply time for the extra amount will be the date of issue of invoice (at the option of the supplier).

For clauses (a) and (b) – One will assume that the supply is made to the extent covered by the invoice or the payment (as the case may be).

For clause (b) – the date of receipt of payment is earlier of-

(i) The date on which he entered the payment in his books

OR

(ii) The date on which the payment is credited to his bank account

GST Invoicing, Time of Supply

C. Time of Supply under Reverse Charge

In case of reverse charge, the time of supply is the earliest of the following dates—

(a) The date of receipt of goods

OR

(b) The date of payment

OR

(c) The date immediately after THIRTY days from the date of issue of invoice by the supplier (60 days for services)

If it is not possible to determine the time of supply under (a), (b) or (c), it will be the date of entry in the books of account of the recipient.

For clause (b) – the date of payment is earlier of –

(a) The date on which the recipient entered the payment in his books

OR

(b) The date on which the payment is debited from his bank account

Time of supply for vouchers:-

(a) The date of issue of voucher, if one can identify the supply at that point OR

(b) The date of redemption of voucher, in all other cases.

When is not possible to determine time of supply:

If it is not possible to determine the supply time by the above provisions, then it will be-

(a) The date of filing a periodical return;GST Consulting, Time of Supply

Or

(b) The date on which the taxpayer pays CGST/SGST, in any other case.

In GST regime, the tax collection event will be earliest of the dates as given above. The various events like issuing invoice, or making payment in case of supply of goods, or services or completion of event – confirm that the Government wants to ensure tax is collected at the earliest point of time.