v Under the GST, the taxable event in general is supply. However, under GST, the taxability has been deferred till the time of supply. The time of supply is the point of taxation, when the liability to pay GST arises.
· General Rule –
Time of supply shall be the earliest of the following:
(a) If goods are required to be removed - Date of removal of goods
Otherwise - Date on which goods are made available
(b) Date of Invoice
(c) Date of Payment
(d) Date of receipt shown by recipient in its books of accounts
- Continuous Supply of Goods –
(a) If successive payments or successive statement of accounts are prepared; date of expiry of period to which the statement or payment relates
(b) Otherwise; date of invoice or date of receipt of payment, whichever is earlier
- Reverse Charge –
Time of supply shall be the earliest of the following:
(a) Date of receipt of goods
(b) Date of payment
(c) Date of receipt of invoice
(d) Date of debit in books of accounts
- Goods sent or taken on approval –
Time of supply shall be the earliest of the following:
(a) Date on which supply has taken place
(b) 6 months from the date of removal
- Residuary clause –
(a) If periodical return is filed - Last date of return
(b) Otherwise - Date of payment of CGST / SGST
v Further, the date of payment has to be considered as the earliest of the following:
- Date of payment as per books of accounts
- Date on which payment is debited / credited in bank account
v Also, the date of removal has to be considered as follows:
- Date of dispatch by supplier or by the person acting on behalf of the supplier
- Date of collection of goods by recipient or by the person acting on behalf of the recipient