Time
of Supply of Goods & Services
A
detailed analysis of Section 12
As per Section 12 (1) of Model GST law the liability to pay
CGST / SGST on the goods or services shall arise at the time of supply
as determined in terms of the provisions of this section.
The time of supply of
goods shall be the earlier of the following dates, namely,-
(a) the date of issue of invoice by the supplier or the last
date on which he is required, under section 28*, to issue the invoice with
respect to the supply; or
(b) the date on which the supplier receives the payment with
respect to the supply:
PROVIDED that
where the supplier of taxable goods receives an amount up to one thousand
rupees in excess of the amount indicated in the tax invoice, the time of supply
to the extent of such excess shall, at the option of the said supplier,
be the date of issue of invoice.
Explanation 1.- For
the purposes of clauses (a) and (b), the supply shall be deemed to have been
made to the extent it is covered by the invoice or, as the case may be, the payment.
Explanation 2.- For
the purpose of clause (b), “the date on which the supplier receives the
payment” shall be the date on which the payment is entered in his books of
accounts or the date on which the payment is credited to his bank account, whichever
is earlier.
Detailed explanation to Section
28
A registered taxable person
supplying taxable goods shall, before or at the time of- removal of goods for
supply to the recipient, where the supply
(a) involves movement of goods,
or
(b) delivery of goods or making
available thereof to the recipient, in any other case,
Shall issue a tax invoice*
showing the description, quantity and value of goods, the tax charged thereon
and such other particulars as may be prescribed:
PROVIDED
that
the Central/State Government may, on the recommendation of the Council, by
notification, specify the categories of goods and/or supplies in respect of which
the tax invoice shall be issued within such time as may be prescribed.
Tax invoice
(1) Subject to rule 5, a tax
invoice referred to in section 23 shall be issued by the supplier containing
the following details:-
(a) name, address and GSTIN of
the supplier;
(b) a consecutive serial number
containing only alphabets and/or numerals, unique for a financial year;
(c) date of its issue;
(d) name, address and GSTIN/
Unique ID Number, if registered, of the recipient;
(e) name and address of the
recipient and the address of delivery, along with the name of State and its
code, if such recipient is unregistered and where the taxable value of supply
is fifty thousand rupees or more;
(f) HSN code of goods or
Accounting Code of services;
(g) description of goods or
services;
(h) quantity in case of goods
and unit or Unique Quantity Code thereof;
(i) total value of goods or
services;
(j) taxable value of goods or
services taking into account discount or abatement, if any;
(k) rate of tax (CGST, SGST or
IGST);
(l) amount of tax charged in
respect of taxable goods or services (CGST, SGST or IGST);
(m) place of supply along with
the name of State, in case of a supply in the course of inter-State
trade or commerce;
(n) place of delivery where the
same is different from the place of supply;
(o) whether the tax is payable
on reverse charge;
(p) the word “Revised Invoice”
or “Supplementary Invoice”, as the case may be, indicated prominently, where
applicable along with the date and invoice number of the original invoice; and
(q) signature or digital
signature of the supplier or his authorized representative.
Provided that the
Board/Commissioner may, by notification, specify -
(i) the number of digits of HSN
code for goods or, as the case may be, the Accounting Code for services, that a
class of taxable persons shall be required to mention, for such period as may
be specified in the said notification, and
(ii) the class of taxable
persons that would not be required to mention the HSN code for goods or, as the
case may be, the Accounting Code for services, for such period as may be
specified in the said notification:
Provided further that in case
of exports, the invoice shall carry an endorsement
“SUPPLY MEANT FOR EXPORT ON
PAYMENT OF IGST” or “SUPPLY MEANT FOR EXPORT UNDER BOND WITHOUT PAYMENT OF
IGST”, as the case may be, and shall, in lieu of the details
specified in clause (e),
contain the following details:
(i) name and address of the
recipient;
(ii) address of delivery;
(iii) name of the country of
destination; and
(iv) number and date of
application for removal of goods for export [ARE-1].
(2) The invoice referred to in
sub-rule (1), in case of taxable supply of services, shall be issued within a
period of thirty days from the date of supply of service:
Provided that in case of
continuous supply of services, the invoice shall be issued within a period of
thirty days from the date when each event specified in the contract, which requires
the recipient to make any payment to the supplier of services, is completed:
Provided further that where the
supplier of service is a banking company or a financial institution including a
non-banking financial company, the period within which the invoice is to be
issued shall be forty five days from the date of supply of service.
Manner of Issuing Invoice
(1) The invoice shall be
prepared in triplicate, in case of supply of goods, in the following
manner:–
(a) the original copy being
marked as ORIGINAL FOR RECIPIENT;
(b) the duplicate copy being
marked as DUPLICATE FOR TRANSPORTER; and
(c) the triplicate copy being
marked as TRIPLICATE FOR SUPPLIER.
Provided that the duplicate
copy is not required to be carried by the transporter if the supplier has
obtained an Invoice Reference Number under sub-rule (4).
(2) The invoice shall be
prepared in duplicate, in case of supply of services, in the following manner:-
(a) the original copy being
marked as ORIGINAL FOR RECEIPIENT; and
(b) the duplicate copy being
marked as DUPLICATE FOR SUPPLIER.
(3) The serial number of
invoices issued during a tax period shall be furnished electronically through
the Common Portal in FORM GSTR-1.
(4) A registered taxable person
may obtain an Invoice Reference Number from the Common Portal by uploading, on
the said Portal, a tax invoice issued by him in FORM GST INV-1,
and produce the same for verification by the proper officer as required under
section 61 in lieu of the tax invoice.
(5) The Invoice Reference
Number shall be valid for a period of 30 days from the date of uploading.
Time
of supply of Services
A registered taxable person
supplying taxable services shall, before or after the provision of service but
within a period prescribed in this behalf, issue a tax invoice, showing the
description, value, the tax payable thereon and such other particulars as may
be prescribed:
PROVIDED that
the Central/State Government may, on the recommendation of the Council, by
notification, specify the categories of services in respect of which any other
document issued in relation to the supply shall be deemed to be a tax invoice, subject
to such conditions and limitations as may be prescribed.
Notwithstanding anything
contained in sub-sections (1) and (2):
(a) a registered taxable person
may, within one month from the date of issuance of certificate of
registration and in such manner as may be prescribed, issue a revised invoice
against the invoice already issued during the period starting from the
effective date of registration till the date of issuance of certificate of registration
to him;
(b) a registered taxable person
supplying exempted goods and/or services or paying tax under the provisions of
section 9 shall issue, instead of a tax invoice, a bill of supply containing
such particulars and in such manner as may be prescribed:
PROVIDED that
the registered taxable person may not issue a bill of supply if the value of
the goods or services supplied is less than one hundred rupees except
where the recipient of the goods or services requires such bill.
(c) a registered taxable person
shall, on receipt of advance payment with respect to any supply of goods or
services by him, issue a receipt voucher or any other document, including
therein such particulars as may be prescribed, evidencing receipt of such
payment;
(d) a registered taxable person
who is liable to pay tax under sub-section (3) of section 8 shall issue an
invoice in respect of goods or services received by him on the date of receipt
of goods or services from a person who is not registered under the Act.
In case of continuous supply of
goods, where successive statements of accounts or successive payments are
involved, the invoice shall be issued before or at the time each such statement
is issued or, as the case may be, each such payment is received.
In
case of continuous supply of services
(a) where the due date of
payment is ascertainable from the contract, the invoice shall be issued before
or after the payment is liable to be made by the recipient but within a period
prescribed in this behalf whether or not any payment has been received by the
supplier of the service;
(b) where the due date of
payment is not ascertainable from the contract, the invoice shall be issued
before or after each such time when the supplier of service receives the
payment but within a period prescribed in this behalf;
(c) where the payment is linked
to the completion of an event, the invoice shall be issued before or after the
time of completion of that event but within a period prescribed in this behalf.
In a case where the supply of
services ceases under a contract before the completion of the supply, the
invoice shall be issued at the time when the supply ceases and such invoice
shall be issued to the extent of the supply effected before such cessation.
For the purposes of sub section (4) and (5),
the Central or a State Government may on the recommendation of the Council,
specify, by notification, the supply of goods or services that shall be treated
as continuous supply of goods or services.
Notwithstanding anything
contained in sub-section (1), where the goods (being sent or taken on approval
or sale or return or similar terms) are removed before it is known whether a
supply will take place, the invoice shall be issued before or at the time when
it becomes known that the supply has taken place or six months from the date of
removal, whichever is earlier.
Explanation.- The
expression “tax invoice” shall be deemed to include a document issued by an
Input Service Distributor under section 21, and shall also include any revised
invoice issued by the supplier in respect of a supply made earlier.
In case of supplies in respect of which tax is paid or
liable to be paid on reverse charge basis, the time of supply shall be the
earliest of the following dates,
namely—
(a) the date of the receipt of goods, or
(b) the date on which the payment is made, or
(c) the date immediately following thirty days from
the date of issue of invoice by the supplier:
PROVIDED
that
where it is not possible to determine the time of supply under clause (a), (b)
or (c), the time of supply shall be the date of entry in the books of account
of the recipient of supply.
Explanation - For
the purpose of clause (b), “the date on which the payment is made” shall be the
date on which the payment is entered in the books of accounts of the recipient
or the date on which the payment is debited in his bank account, whichever
is earlier.
In case of supply of vouchers, by whatever name called, by a
supplier, the time of supply shall be-
(a) the date of issue of voucher, if the supply is
identifiable at that point; or
(b) the date of redemption of voucher, in all other cases;
In case it is not
possible to determine the time of supply under the provisions of sub-section
(2), (3) or (4) the time of supply shall
(a) in a case where a periodical return has to be filed, be
the date on which such return is to be filed, or
(b) in any other case, be the date on which the CGST/SGST is
paid.
Time of
supply of services
(1) The liability to pay CGST/SGST on services shall arise
at the time of supply, as determined in terms of the provisions of this
section.
(2) The time of supply of services shall be the earlier of
the following dates, namely:-
(a) the date of issue of invoice by the supplier or the last
date on which he is required, under section 28, to issue the invoice with
respect to the supply; or
(b) the date on which the supplier receives the payment with
respect to the supply:
PROVIDED that
where the supplier of taxable service receives an amount up to one thousand
rupees in excess of the amount indicated in the tax invoice, the time of supply
to the extent of such excess shall, at the option of the said supplier, be the
date of issue of invoice.
Explanation 1.- For
the purposes of clauses (a) and (b), the supply shall be deemed to have been
made to the extent it is covered by the invoice or, as the case may be, the
payment.
Explanation 2.- For
the purpose of clause (b), “the date on which the supplier receives the
payment” shall be the date on which the payment is entered in his books of
accounts or the date on which the payment is credited to his bank account,
whichever is earlier.
(3) In case of supplies in respect of which tax is paid or
liable to be paid on reverse charge basis, the time of supply shall be the
earlier of the following dates, namely-
(a) the date on which the payment is made, or
(b) the date immediately following sixty days from the date
of issue of invoice by
the supplier:
PROVIDED that
where it is not possible to determine the time of supply under clause (a) or
(b), the time of supply shall be the date of entry in the books of account of
the recipient of supply:
PROVIDED
FURTHER that in case of ‘associated enterprises’, where the
supplier of service is located outside India, the time of supply shall be the
date of entry in the books of account of the recipient of supply or the date of
payment, whichever is earlier.
Explanation.- For
the purpose of clause (a), “the date on which the payment is made” shall be the
date on which the payment is entered in the books of accounts of the recipient
or the date on which the payment is debited in his bank account, whichever is
earlier.
(4) In case of supply of vouchers, by whatever name called,
by a supplier, the time of supply shall be-
(a) the date of issue of voucher, if the supply is
identifiable at that point; or
(b) the date of redemption of voucher, in all other cases;
(5) Where it is not possible to determine the time of supply
of services in the manner specified in sub-sections (2), (3) or (4), the time
of supply shall
(a) in a case where a periodical return has to be filed, be
the date on which such return is to be filed; or
(b) in any other case, be the date on which the CGST/SGST is
paid.