Time of supply and place of supply

TIME OF SUPPLY

Time of supply of goods (Default Rule)

EARLIEST of the following dates:

• Date of issue of invoice by the supplier. (If the invoice is not issued, then the last date on which the supplier is legally bound to issue the invoice with respect to the supply)

• Date on which the supplier receives the payment

Time of supply of services (Default Rule)

EARLIEST of the following dates:

• Date of issue of invoice by the supplier (If the invoice is issued within the legally prescribed period under section 31(2) of the CGST Act) OR the date of receipt of payment, whichever is EARLIER

• Date of provision of service (If the invoice is not issued within the legally prescribed period under section 31(2) of the CGST Act) OR the date of receipt of payment, whichever is EARLIER

• Date on which the recipient shows the receipt of service in his books of account, in case the aforesaid two provisions do not apply

Time of supply of GOODS when tax is to be paid on REVERSE CHARGE BASIS:

EARLIEST of the following dates:

• Date of receipt of goods

• Date of payment *

• Date immediately following 30 days from the date of issue of invoice or any other legal document in lieu of invoice by the supplier

*w.e.f. 15.11.2017 'Date of Payment' is not applicable for goods and applies only to services. Notification No. 66/2017 - Central Tax

Time of supply of SERVICES when tax is to be paid on REVERSE CHARGE BASIS

EARLIEST of the following dates:

• Date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier

• Date immediately following 60 days from the date of issue of invoice or any other legal document in lieu of invoice by the supplier

Time of supply of goods or services (Residual provisions)

In case it is not possible to determine the time of supply under aforesaid provisions, time of supply is:

• Due date of filing of return, in case where periodical return has to be filed

• Date of payment of tax in all other cases.

Place of supply

A. Place of Supply for Goods

Usually, in case of goods, the place of supply is where the goods are delivered.

So,the place of supply of goods is the place where the ownership of goods changes.

What if there is no movement of goods. In this case, the place of supply is the location of goods at the time of delivery to the recipient.

Place of supply in cases where goods that are assembled and installed will be the location where the installation is done.

B. Place of Supply for Services

Generally, the place of supply of service is the location of the service recipient.

In cases where the services are provided to an unregistered dealer and their location is not available the location of service provider will be the place of provision of service.

Special provisions have been made to determine the place of supply for the following services:

• Services related to immovable property Restaurant services
• Admission to events
• Transportation of goods and passengers
• Telecom services
• Banking, Financial and Insurance services.

In case of services related to immovable property, the location of the property is the place of provision of services.

The author can also be reached at maheshbobbili.ca@gmail.com