Section 12 of CGST Act Time of supply of goods

CHAPTER IV

Chapter IV of the CGST Act,2017 covers four sections relating toTIME AND VALUE OF SUPPLY. The GST law has provided separate provisions to determine the time of supply of goods and time of supply of services. Section 12, 13 & 14 of the Central GST Act, 2017 (CGSTAct) deals with the provisions related to time of supply and by virtue of Section 20 of the Integrated GST Act, 2017 (IGST Act) these provisions are also applicable for the IGST Act.

Section 12: Time of supply of goods
Section 13: Time of supplyof services
Section 14: Change inrate of tax inrespect ofsupply ofgoods orservices
Section 15: Value oftaxablesupply

In order to calculate and discharge tax liability, it is importantto know the date when the tax liability arises i.e. the date onwhich the charging event has occurred. In GST law, it is knownas Time of Supply of goods.Point oftime when supplier receives the payment or date of receipt ofpayment. The phrase the date on which supplier receives the payment or the date of receipt of payment means the dateon which payment is entered in his books of accounts or the date on which the payment is credited to his bank account, whicheveris earlier.

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

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

(2) 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 isrequired, under sub-section (1) of section 31, to issue the invoice with respect to thesupply; or

(b) the date on which the supplier receives the payment with respect to thesupply:
Provided that where the supplier of taxable goods receives an amount up to onethousand rupees in excess of the amount indicated in the tax invoice, the time ofsupply to the extent of such excess amount shall, at the option of the said supplier, bethe date of issue of invoice in respect of such excess amount.

Explanation 1. For the purposes of clauses (a) and (b), supply shall bedeemed to have been made to the extent it is covered by the invoice or, as the case maybe, the payment.

Explanation 2. For the purposes of clause (b), the date on which the supplierreceives the payment shall be the date on which the payment is entered in his booksof account or the date on which the payment is credited to his bank account, whicheveris earlier.

(3) In case of supplies in respect of which tax is paid or liable to be paid on reversecharge 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 thedate 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 orany 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 underclause (a) or clause (b) or clause (c), the time of supply shall be the date of entry in thebooks 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 ofsub-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 suchreturn 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 byway of interest, late fee or penalty for delayed payment of any consideration shall be the dateon which the supplier receives such addition in value.

Tags: Section 12 of CGST Act Time of supply of goods,notification no 40 2017 central tax, notification no. 66/2017 under gst, notification no. 40/2017-central tax, dated the 13th october, 2017, notification no. 40/2017-central tax dated 13 october, 2017, notification no. 40/2017 central tax, dated 13/10/2017, gst notification 66/2017, cgst notification no. 66/2017, 66/2017 gst,section 13 of cgst act, section 12 of cgst act 2017, section 14 of cgst act, section 12(3) of gst act, section 12 of igst act, section 12(2) of cgst act, section 13 of gst act, section 12(3) of cgst act,section 13 of igst act, section 14 of cgst act, section 12 of cgst act, section 31 of cgst act, section 12 of cgst act 2017, section 12 of gst act, section 31(2) of cgst act, section 15 of cgst act,section 13(8) of igst act, section 13(9) of igst act, section 12 of igst act, section 13 of gst act, section 16 of igst act 2017, section 13 of cgst act, section 13 igst, section 13(1) of cgst act