Time and place of Supply under GST

What is time and place of supply under GST?

Time of supply means that time when goods/services are considered as supplied When the seller knows the time of supply of goods and services, it helps him to identify the due date for payment of taxes.

Place of Supply is identified by checking whether the transaction will be counted as intra-state or inter-state and accordingly SGST, CGST & IGST are levied.

Time of supply of Goods (Section 12)

Under forward charge

Time of supply of goods is determined from the following whichever is earlier:

• Date of issue of invoice
• Last date on which invoice should have been issued
• Date on which payment is recorded in the books of accounts or debited in the bank account

Under reverse charge

In case of reverse charge the time of supply for goods is earliest of:

• Date on which goods received
• 30 days from date of issue of invoice for goods (60 days for services)

Under voucher exchangeable for goods

• When Supply is not identifiable at the time of issue of voucher
  Date of redemption of voucher

• When Supply is identifiable at the time of issue of voucher
  Date of issue of voucher

Time of supply of Services (Section 13)

Under forward charge

Time of supply of services will be earlier of the following:

• Date of issue of invoice
• Date of receipt of advance/ payment.
• Date of provision of services (if invoice is not issued within prescribed period)

Under Reverse charge

In case of reverse charge the time of supply for service receiver is earliest of the following:

• Date of payment recorded in the books of accounts of the entity that receives the goods, or the date on which it is debited from the entity’s bank account whichever is earlier
• 30 days from date of issue of invoice for goods (60 days for services)

Exception

Import of services between associated enterprises

In the case of services received from an associated enterprise located outside India, the time of supply under such case will be

• Date of payment
• Date of entry of services in account

Place of supply

Place of supply of goods

Usually, in case of goods, the place of supply is where the goods are been delivered. So, the place of supply of goods is the place where the ownership of goods ultimately changes. In case, if there is no movement of goods the place of supply will be the location of goods at the time of delivery to the recipient.

Place of supply in cases where the goods that are assembled and installed will be the location where the installation has been done.

Place of supply of Services

Generally, the place of supply of services is the location on which service is received. In cases where the services are provided to an unregistered dealer and their location is not available the location of service provider will be the place of provision of service.