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Time of Supply
Separate provisions under the CGST Act have been made for determination of time of supply of goods as well as of services respectively by Sections 12 and 13. It is advisable to study them separately.
Time of Supply in case of Goods
Tax becomes payable at the time of supply, as determined in accordance with the provision of Section 12. This means the actual time of supply is not to be taken into account but, the one determined by Section 12 is deemed to be treated as time of supply. It contains General provisions, Specific provisions and Residuary provision.
General Provision:

Time of supply shall be earlier of,

 (a) Date of issue of Invoice or (b) last date on which tax invoice shall be issued u/s 31(1) i.e.: (c) Date of receipt of payment i.e. earlier of the following:
  1. Where the supply involves movement of goods, Tax Invoice shall be issued before or at the time of removal of goods for supply to the recipient or
  2. In other case, Tax Invoice shall be issued before or at the time of delivery of goods or making the goods available to the recipient or
  3. As per date Notified by the Government within its power to do so as per proviso to Section 31(1) for issuance of a Tax Invoice.
  1. the date on which the payment is entered in the supplier’s books or
  2. the date on which the payment is credited to supplier’s bank account.
For the purposes of date of invoice and date of receipt of payment, “supply” shall be deemed to have been made to the extent it is covered by the invoice or payment.
Movement of goods covers cases where the supply in question requires the movement of goods from one place to another. Removal means dispatch and receipt of goods respectively by supplier and recipient and the Tax Invoice shall be prepared before or at the time of such removal.
Where payment is received in excess of the amount indicated in Tax Invoice up to
₹ 1,000/-,		 The Time of supply in respect of such excess shall be at the option of supplier:–
  1. The date of such excess or
  2. The date of issue of invoice in respect of such excess amount.
Specific provision where tax is payable on reverse charge basis, Time of supply shall be earliest of the following dates:
  1. Date of receipt of goods; or
  2. Date of payment as entered in recipient’s books or date on which the payment is debited in recipient’s bank account, whichever is earlier; or
  3. Date immediately following thirty days from the date of invoice or any other document, by whatever name called, in lieu thereof by the supplier.
Where the aforesaid provisions cannot determine the time of supply, it shall be date of entry in recipient’s books.
Specific Provision in case of supply of vouchers by a supplier, Time of supply shall be:
  1. The date of issue of voucher, if the supply is identifiable at that point; or
  2. The date of redemption of voucher, in all other cases.
Residuary Provision, where it is not possible to apply the general or/and special provisions, Time of supply shall be:
  1. Date on which a periodical return is to be filed, (if it is required to be filed); or
  2. In other case, date of payment of tax.
Where the supplier receives the additional payments by way of interest, late fee or penalty for delayed payment of value of supply, Time of supply shall be, the date on which such additional value is received.

Time of Supply in case of Services
Tax becomes payable at the time of supply, as determined in accordance with the provision of Section 13. This means the actual time of supply is not to be taken into account but, the one determined by Section 13 is deemed to be treated as time of supply.
General Provision: Time of supply shall be earliest of these three dates. (a) Date of invoice if the invoice is issued within the period prescribed u/s. 31(2) or date of receipt of payment, whichever is earlier; or (b) Date of provision of service or date of receipt of payment, whichever is earlier; or [This will apply only if invoice is not issued within the period prescribed u/s. 31(2)] (c) Date on which the recipient shows the receipt of services in his books. (This provision will apply only where earlier provisions do not apply.)
For the purposes of clauses (a) and (b)—
  1. The 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;
  2. “The date of receipt of payment” shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier.
Where payment is received in excess of the amount indicated in Tax Invoice up to
₹ 1,000/-.		 The Time of supply in respect of such excess shall be at the option of supplier:-
  1. The date of such excess or
  2. The date of issue of invoice in respect of such excess amount.
Specific provision where tax is payable on reverse charge basis, the time of supply shall be the earlier of these dates. (a) Date of payment as entered in recipient’s books or date on which the payment is debited in recipient’s bank account, whichever is earlier; or (b) Date immediately following sixty days from date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier.
Where the aforesaid provisions cannot determine the time of supply, Time of supply shall be, the date of entry in the recipient’s books.
Where supply is by associated enterprises located outside India, Time of supply shall be, date of entry in recipient’s books

or

the date of payment, whichever is earlier.
Special Provision in case of supply of vouchers by a supplier, Time of supply shall be, (a) 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.
Residuary Provision, where it is not possible to apply the general or/and special provisions, Time of supply shall be, (a) Date on which a periodical return is to be filed, (if it is required to be filed); or (b) In other case, date of payment of tax.
Where the supplier receives the additional payments by way of interest, late fee or penalty for delayed payment of value of supply, Time of supply shall be the date on which such additional value is received.

Change in rate of tax in respect of supply of goods or services
Section 14 determines the time of supply when the rate of tax changes. In such case the provisions of Sections 12 and 13 are not to be applied.
This Section takes into account two situations given below:
Where the supply is made Invoice is issued Payment is received Time of supply
Before the change in rate of tax After the change After the change Earlier of Date of receipt of payment

OR

Date of Issue of Invoice
After the change Before the change Date of receipt of payment
Before the change After the change Date of Issue of Invoice
After the change in rate of tax Before the change Before the change Earlier of Date of receipt of payment

OR

Date of Issue of Invoice
Before the change After the change Date of receipt of payment
After the change Before the change Date of Issue of Invoice
The Explanation to Section 14 clarifies that ‘date of receipt of payment’ is the date on which the payment is entered in supplier’s books or the date on which the payment is credited to supplier’s bank, whichever is earlier. Moreover, Section 14 provides that if the date of credit in supplier’s bank is after 4 working days from the date of change in rate of tax, the ‘date of receipt of payment’ has to be taken as the date of credit.
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