Time Of Supply In Goods And Service Tax (GST ACT)



The phrase “the date on which supplier receives the payment” or “the date of receipt of payment” means the date on which payment is entered in his books of accounts or the date on which the payment is credited to his bank account, whichever is earlier.

Time of issue of invoice for supply It’s important to learn about the time of issue of invoice because practically invoice is the main document which decides the time of supply.

An invoice for supply of goods needs to be issued before or at the time of removal of goods for supply to the recipient, where the supply involves movement of goods.

However, in other cases, an invoice needs to be issued before or at the time of delivery of goods or while making goods available to the recipient.

Similarly an invoice for supply of services needs to be issued before or after the provision of service but not later than thirty days from the date of provision of service (performance of services).

Time of supply of goods (Default Rule) Earliest of the following dates:

Date of issue of invoice by the supplier. If the invoice is not issued, then the last date on which the supplier is legally bound to issue the invoice with respect to the supply.

 Date of removal Date of Invoice  Date of payment  Time of Supply

01.09.2017     01.09.2017    05.09.2017       01.09.2017

01.09.2017     01.09.2017    04.08.2017       04.08.2017

01.09.2017     03.09.2017    05.09.2017       03.09.2017

01.09.2017     Not issued     05.09.2017        01.09.2017

01.09.2017     Not issued    04.08.2017        04.08.2017

Time of supply of services (Default Rule) • If the invoice is issued within the prescribed period - Date of issue of invoice by the supplier or the date of receipt of payment, whichever is earlier.

If the invoice is not issued within the prescribed period - Date of provision of service or the date of receipt of payment, whichever is earlier.

Time of supply of goods when tax is to be paid on reverse charge basis Earliest of the following dates:

• Date of receipt of goods.

  • 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.
    • Date immediately following 30 days from the date of issue of invoice by the supplier

Time of supply of services when tax is to be paid on reverse charge basis Earliest of the following dates: • Date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; 

• Date immediately following 60 days from the date of issue of invoice by the supplier.