Time of Supply in case of Goods under GST
The time of Supply is a very important aspect with reference to GST as the tax rate on the time of supply has to be charged in respect of the supply.
As per Section 12(2) of the CGST Act, time of supply in case of goods under forward charge is the earliest of the following :
(a) Date of issue of invoice or the last date up to which invoice can be issued u/s 31(1) of the CGST Act
(b) Date on which the supplier has received the payment (entering in books of account or credit in bank statement whichever is earlier)
However, vide notification 66/2017 dtd. 15/11/2017 this provision has been made redundant as there will be no GST payable at the time of receipt of payment in case of a supply of goods.
Thus in the case of a supply of goods, the time of supply will be the date of issue of invoice or the due date up to which the invoice can be issued.
Now we look at the provision relating to the issue of invoice in case of supply of goods.
As per Section 31(1), the time limit for issuance of the invoice is :
(a) In case of movement of goods, it is before or at the time of removal of goods
(b) In other cases, it is at the time of delivery of goods.
In this case, the time of supply of goods will be the earliest of the following :
(a) Date of receipt of goods
(b) Date of payment
(c) 31st day for the date of issue of invoice by the supplier