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In case of advance to vendor

Saheb Ghosh (Zonal Commercial Assistant) (16 Points)

09 August 2017

please arrange to provide the section no. where clearly say about advance to pay to vendor..

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Dnyanesh M. Patade (Article) (61 Points)
Replied 09 August 2017

Section 12 of CGST Act talks about the time of supply:

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

(2) The time of supply of goods shall be the earlier of the following dates, namely:—

the date of issue of invoice by the supplier or the last date on which he is required, under sub-section (1) of section 31, to issue the invoice with respect to the supply; or
the date on which the supplier receives the payment with respect to the supply:

Provided that where the supplier of taxable goods receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount.