Time of supply of goods, Section 12 of CGST Act,2017

 

Section 12 of CGST Act,2017:  Time of supply of goods

 

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The below post explains about Time of supply of goods under section 12 of CGST Act,2017.

Section 12 of CGST Act, 2017 explains Time of supply of goods as below: (The amendments if any will also be updated here soon).

The extract of Section 12 of CGST Act,2017 quoted below:

Time of supply of goods

12. (1) The liability to pay tax on goods shall arise at the time of supply, as determined in accordance with the provisions of this section.

(2) The time of supply of goods shall be the earlier of the following dates, namely:—

Time of supply of goods, Section 12 of CGST Act,2017(a) the date of issue of invoice by the supplier or the last date on which he is

required, under sub-section (1) of section 31, 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 upto one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount.

 

Explanation 1.––For the purposes of clauses (a) and (b), “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 purposes 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 account 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 earliest of the following dates, namely:—

(a) the date of the receipt of goods; or

(b) the 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; or

(c) the date immediately following thirty days from the date of issue of invoice or

any other document, by whatever name called, in lieu thereof by the supplier:

Provided that where it is not possible to determine the time of supply under

clause (a) or clause (b) or clause (c), the time of supply shall be the date of entry in the

books of account of the recipient of supply.

(4) In case of supply of vouchers 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 under the provisions of

sub-section (2) or sub-section (3) or sub-section (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 tax is paid.

(6) The time of supply to the extent it relates to an addition in the value of supply by

way of interest, late fee or penalty for delayed payment of any consideration shall be the date

on which the supplier receives such addition in value.

The above information clarifies about Time of supply of goods under section 12 of CGST Act,2017.  

If you have any comments about Section 12 of CGST Act, 2017 explaining Time of supply of goods, share below your thoughts:

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