bsseethapathirao | May 20, 2019 |
Time of Supply in case of Change in Rate of Tax under GST Scenario:
In the recent time rate f taxes are changed frequently. At the time of supply of goods or services, we need to charge correct rate of tax on supplies. To determine correct rate on supply, we need to determine correct time of supply.
With the help of following table we can determine time of supply in case of change in rate of tax:
Case | Events before change in effective rate of tax | Events after change in effective rate of tax | Time of supply if goods & services are supplied before change in effective rate of tax | Time of supply if goods & services are after change in effective rate of tax |
1 | Invoice issued/Payment Received | No activity | – Date of receipt of payment or – Date of issue of invoice whichever is earlier | N A |
2 | Invoice Issued / Payment Received | Supply of Goods & Services | N A | – Date of receipt of payment or – Date of issue of Invoice whichever is earlier |
3 | Invoice issued | Payment Received | Date of Invoice | Date of receipt of payment |
4 | Payment Received | Invoice Issued | Date of receipt of Payment | Date of Invoice |
The Date of receipt of payment shall be the date of credit in the bank account if such credit in the bank account is after four working days from the date of change in the rate of tax.
Date of receipt of the payment by supplier: Payment is entered into the books of the account or credited in his bank account whichever is earlier.
Examples:
Q.1. Mr. A is supplied goods to Mr. B on 28th December,2017. The GST rate on goods is changed from 12% to 5% w.e.f. 1st January 2018. Mr. A issued invoice on 28th December,2017 and payment is creitedd in his bank account on 30th December,2017. What is the time of supply n this case
Ans). Following Event have been done before change in effective rate of tax:
– Goods supplied,
– Invoice Issued,
– Payment received.
Time of supply will be earliest of the following:
– 28th December,2017,
– 30th December 2017
So, Time of supply will be 28th December,2017.
Q.2. Mr. A is supplied goods to Mr. B on 28th December,2017. The GST Rate on goods is changed from 12% to 5% w.e.f. 1st January2018. Mr. A issued invoice on 2nd January,2018 and payment is credited in his bank account on 29th December,2017. What is the time of supply in this case
Ans). Following Event have been done before change in effective rate of tax.
– Goods supplied,
– Payment Received.
So, Time of supply will be Date of receipt of payment i.e. 29th December, 2017.
Q.3. Mr. A is supplied goods to Mr. B on 28th December, 2017. The GST rate on goods is changed from 12% to 5% w.e.f. 1st January, 2018. Mr. A issued invoice on 28th December, 2017 and payment is credited in his bank account on 4th January, 2018. What is the time of supply in this case
Ans). Following Events have been done before change in effective rate of tax.
– Goods Supplied,
– Invoice Issued.
So, Time of supply will be date of Invoice i. e 28th December 2017.
Q.4. Mr. A is supplied goods to Mr. B on 2nd January ,2018. The GST rate on goods is changed from 12% to 5% w.e.f. 1st January,2018. Mr. A issued invoice on 28th December,2017 and payment is credited in his bank account on 30th December,2017. What is the time of supply in this case
Ans). Following Events have been done before change in effective rate of tax.
– Invoice issued,
– Payment Received.
Time of supply will be earliest of the following.
– 28th December, 2017.
– 30th December, 2017.
So, in the case time of supply will be 28th December2017.
Q.5. Mr. A is supplied goods to Mr. B on 2nd January2018. The GST rate on goods is changed from 12% to 5% w.e.f. 1st January,2018. Mr. A issued invoice on 29th December,2017 and payment is credited in his bank account on 4th January,2018. What is the time of supply in this case
Ans). Following Event have been done before change in effective rate of tax.
– Invoice Issued.
Time of supply will be date of receipt of the payment i.e. 4th January,2018.
Q.6. Mr. A is supplied goods to Mr. B on 2nd January, 2018. The GST rate on goods is changed from 12% to 5% w.e.f. January ,2018. Mr. A issued invoice on 2nd January,2018 and payment is credited in his bank account on 29th December,2017. What is the time of supply in this case
Ans). Following Event have been done before change in effective rate of tax.
– Payment received.
So, in this case time of supply will be date of invoice i.e. 2nd January, 2018.
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