1. TIME OF SUPPLY
By CA Shubham Khaitan, B.COM (Honours), ACA, ACS, CFA(USA), DISA (ICAI)
Partner - Tax & Regulatory, S. Khaitan & Associates
ID: Phone No ,
Website:

2. TIME OF SUPPLY

3. Supply of goods/services Liability to pay tax
Levy of GST
Levy of GST
Supply of goods/services
Liability to pay tax
Time of Supply
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 3

4. Time of supply of goods – Forward Charge
Earliest of the following dates:
Actual date of issue of invoice by the supplier
Last date on which the supplier is required to issue invoice
Date of receipt of payment by the supplier
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 4

5. What will be date of receipt of payment by supplier?
Earlier
Date of entering payment in books
Date of credit in bank account
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 5

6. Non-specified goods – Forward Charge
Last date of issue of invoice for supply of goods
Involves movement of goods
Does not involve movement of goods
At or before the removal of goods
At or before the delivery of goods / making available to the recipient
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 6

7. Payment in excess of Tax Invoice amount
Payment received in excess of tax invoice amount
Excess payment is limited to Rs. 1000
Time of supply to the extent of excess amount
Date of issue of Invoice
(at the option of the supplier)
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 7

8. Date of Issue of Invoice Date of removal of goods
Illustration 1: Answer:
Payment Received
Date of Issue of Invoice
Date of removal of goods
Amount (Rs.)
Date
Amount
28/11/2017
20,000
08/12/2017
05/12/2017
30,000
13/12/2017
10,000
Time of Supply
Trigger Event
Value
28/11/2017
Date of receipt of payment
20,000
05/12/2017
Last date of issue of invoice
10,000
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 8

9. Goods sent on sale or approval basis
Last date of issue of invoice
When the supply becomes known
Six months from the date of removal
Earlier
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 9

10. Goods sent on approval or sale or return basis
Illustration 3:
Answer:
Earlier of the last date of issue of invoice:
Date when the supply is confirmed i.e. 23/02/2018
Six months from the date of removal i.e. 12/01/2018
Event
Date
Value
Goods removed on sale or return basis
12/07/2017
30,000
Confirmation of supply
23/02/2018
Payment Received
25/03/2018
Date of issue of invoice
24/02/2018
Last date of issue of invoice
Date of issue of invoice
Date of receipt of payment
Time of Supply
12/01/2018
24/02/2018
25/03/2018
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 10

11. Continuous Supply of goods
Last date of issue of invoice for supply of goods
When there is successive statement of account
When there is successive Payment
Before or at the time each statement is issued
Before or at the time each payment is made
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 11

12. Continuous supply of Goods
Illustration 4: Under the terms of a contract, a cement manufacturing company is providing its waste on a continuous basis through a pipeline to a company which recycles waste materials. The events are as below: What will be the time of supply of goods? Answer:
Supply period
Period under Invoice
Date of issue of successive statement
Date of issue of invoice
Date of Payment
Amount (Rs.)
01/07/ /03/2018
01/07/ /07/2017
02/08/2017
03/08/2017
09/08/2017
1,00,000
Situations
Trigger Event
Time of Supply
Successive statement of accounts at every month end as per the contract
Date of issue of successive statement of accounts
02/08/2017
Successive Payment involved after every period
Date of issue of invoice
03/08/2017
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 12

13. Specified category of goods
Last date of issue of invoice for supply of goods
Category of Goods specified by notification by the CG/SG
Invoice to be issued within the prescribed time limit
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 13

14. Time of supply of goods – Reverse Charge
Earliest of the following dates:
Date of receipt of goods
Date on which payment is made
Date immediately following thirty days from date of issue of invoice by supplier
Date on which the recipient shows the entry in his books of account
(shall be considered when all the above three events are not determinable)
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 14

15. What will be date of making payment by recipient?
Earlier
Date of entering payment in books
Date of debit in bank account
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 15

16. Time of supply of goods – Reverse Charge
Illustration 5: Answer:
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 16

17. Time of supply of goods – in case of Vouchers
Time of Supply of Goods in case of issue of vouchers
Supply is identifiable at the time of issue of voucher
Supply is not identifiable at the time of issue of voucher
Date of issue of voucher
Date of redemption of voucher
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 17

18. Time of supply of goods – in case of Vouchers
Mrs. X
US Polo Association
Buys a gift card on 14/02/2018 for redemption against T-shirts worth Rs. 1,299
Gifts on Valentine’s day
Mr. X
Redeems the gift card against T-shirts on 21/03/2018
Time of Supply – 14/02/2018
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 18

19. Time of supply of goods – in case of Vouchers
Mr. X
Kalyan Jewellers
Buys a gift card on 14/02/2018 for redemption against anything worth Rs. 25,000 or more
Gifts on Valentine’s day
Mrs. X
Redeems the gift card for jewellery on 21/03/2018
Time of Supply – 21/03/2018
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 19

20. Not possible to determine time of supply from above?
Date when the return is to be filed
Where periodical return has to be filed
Date on which CGST/SGST is paid
Where periodical return is not required to be filed
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 20

21. Delayed payment of consideration
Addition in value by way of interest, late fee or penalty for delayed payment of consideration
Date on which the supplier receives the addition in value
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 21

22. Delayed payment of consideration
X Ltd.
Y Ltd.
Supplies goods worth Rs. 100,000 on 25/03/2018 on the condition of penalty of Rs. 5,000 for delay beyond 2 months
Y Ltd pays Rs. 100,000 along with penalty of Rs. 5,000 on 10/06/2018
Time of Supply – 10/06/2018
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 22

23. Time of Supply of Goods Forward Charge Reverse Charge
Issue of Vouchers
Any Other Case
Late fee /Interest/ Penalty
Earliest of:
Issue of invoice
last date on which invoice is required to be issued
Receipt of Payment
Earliest of:
Receipt of Goods
Day immediately following 30 days from the issue of Invoice
Making payment
Debit in books (if all the above events are not determinable)
Supply is identifiable at that point
Supply is not identifiable at that point
When return is to be filed
No return required to be filed
Date of which supplier receives addition in value
Date of issue of voucher
Date of redemption of voucher
Date on which return is to be filed
Date of payment of CGST/ SGST
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 23

24. Time of supply of service
Where invoice is issued within/before the prescribed period
Where invoice is not issued within the prescribed period
Date of issue of invoice
Date of receipt of payment
Date of completion of service
Date of receipt of payment
Earlier
Earlier
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 24

25. Payment in excess of Tax Invoice amount
Payment received in excess of tax invoice amount
Excess payment is limited to Rs. 1000
Time of supply to the extent of excess amount
Date of issue of Invoice (at the option of the supplier)
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 25

26. Date of provision of service Last Date of issue of invoice
Time of supply of service
Illustration 7: Answer:
Payment Received
Date of provision of service
Last Date of issue of invoice
Amount (Rs.)
Date
13/07/2017
70,000
23/08/2017
22/09/2017
1,20,000
23/10/2017
50,000
Situations
Date of invoice
Invoice issued within the prescribed period
24/08/2017
Invoice not issued within the prescribed time period
15/10/2017
Trigger Event
Value
Time of Supply
Date of receipt of payment
70,000
13/07/2017
Date of issue of invoice
50,000
24/08/2017
Date of completion of service
23/08/2017
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 26

27. Continuous supply of Services
Last date of issue of invoice
Where due date of payment ascertainable from the contract
Where due date of payment not ascertainable from the contract
Where payment linked to completion of an event
On or before the due date of payment
Before or at the time when the supplier receives the payment
On or before the completion of the event
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 27

28. Period of Construction Scheduled Payment dates
Continuous Supply of Service
Illustration 8: A home buyer is getting construction service from a developer of a real estate from 01/07/2017 to 31/03/2018 for Rs. 150,00,000.
Period of Construction
Total Value
Payment terms
Scheduled Payment dates
Date of Invoice
Actual payment dates
Value
01/07/ /03/2018
1,50,00,000
Equal Instalments at the end of every quarter
30/09/2017
03/10/2017
15/10/2017
5,000,000
31/12/2017
02/12/2017
03/02/2018
31/03/2018
10/04/2018
20/03/2018
As per mutual understanding NA
15/04/2018
12/12/2017
3,000,000
25/04/2018
12,000,000
40% payment on 40% completion and balance on 100% completion
01/10/2017
29/09/2017
05/10/2017
6,000,000
21/02/2018
24/03/2018
28/03/2018
9,000,000
Time of supply
30/09/2017
02/12/2017
20/03/2018
12/12/2017
15/04/2018
29/09/2017
21/02/2018 .
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 28

29. Supply of services ceasing before completion of supply
Last date of issue of invoice
Supply of Services ceases under a contract before the completion of the supply
At the time of cessation of supply, to the extent of the supply effected before such cessation
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 29

30. Supply of services ceasing before completion of supply
Illustration 9: A contract for supply of professional services was entered for Rs.500,000/-.
Date when supply of service gets ceased: 16/08/2017
(Supply made of Rs.350,000/- till date)
Date when supply was due to be completed: 19/09/2017
Date of commencement of supply: 20/07/2017
Date of Invoice : 13/08/2017
Date of payment: 20/08/2017
Time of Supply: 13/08/2017
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 30

31. Time of supply of service – Reverse Charge
Earliest of the following dates:
Date on which payment is made
Date immediately following sixty days from date of issue of invoice by supplier
Date on which the recipient shows the entry in his books of account (shall be considered when the above two events are not determinable)
Associated Enterprises + Supplier located outside India > Earlier of (1) and (3) as stated above.
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 31

32. Time of supply of service – Reverse Charge
Illustration 10: Answer:
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 32

33. Time of supply of services – in case of Vouchers
Time of Supply of Services in case of issue of vouchers
Supply is identifiable at the time of supply of voucher
Supply is identifiable at the time of supply of voucher
Date of issue of voucher
Date of redemption of voucher
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 33

34. Time of supply of services – in case of Vouchers
Mr. Y
Little
Buy a Coupon on 10/02/2018 for a buffet for 2 at Barbeque Nation for Rs. 2000
Redeems the coupon against dinner buffet on 14/02/2018
Time of Supply – 10/02/2018
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 34

35. Time of supply of services – in case of Vouchers
Mrs. Y
Little
Buy a Coupon on 10/02/2018 for Rs. 500 for discount against any service at VLCC
Redeems the coupon on 14/02/2018
Time of Supply – 14/02/2018
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 35

36. Not possible to determine time of supply from above?
Date when the return is to be filed
Where periodical return has to be filed
Date on which CGST/SGST is paid
Where periodical return is not required to be filed
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 36

37. Delayed payment of consideration
Addition in value by way of interest, late fee or penalty for delayed payment of consideration
Date on which the supplier receives the addition in value
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 37

38. Delayed payment of consideration
X Ltd.
Y Ltd.
Supplies services under invoice worth Rs. 100,000 on 25/03/2018 on the condition of penalty of Rs. 5,000 for delay beyond 2 months
Y Ltd pays Rs. 100,000 along with penalty of Rs. 5,000 on 10/06/2018
Time of Supply – 10/06/2018
Shubham Khaitan [B.Com(Hons),ACA,ACS,CFA(USA),DISA(ICAI)] 38

39. Time of Supply of Services
Forward Charge
Reverse Charge
Issue of Vouchers
Any Other Case
Late Fees / Interest/ Penalty
Earlier of:
Date of invoice
Date of receipt of payment
Invoice issued before/ within prescribed period
Earlier of:
Date of making payment
Date immediately following sixty days from date of issue of invoice
Date of debit in books (shall be considered when the above are not determinable)
Supply is identifiable at that point
Supply is not identifiable at that point
When return is to be filed
No return required to be filed
Date of addition in value received by supplier
Earlier of:
Last date of issue of invoice
Date of receipt of payment
Invoice not issued within prescribed period
Date of issue of voucher
Date of redemption of voucher
Date on which return is to be filed
Date of payment of CGST/ SGST

40. Name: CA Shubham Khaitan
SPEAKER
Name: CA Shubham Khaitan
Qualification: B.COM (Hons), ACA, ACS, CFA (USA), DISA (ICAI)
Designation: Partner – Tax & Regulatory
Firm name: S. Khaitan & Associates,
Chartered Accountants
CONTACT
Address: Mookerjee House, 17, Brabourne Road
2nd Floor, Kolkata –
Phone: ,
Website: