Time of Supply – Tax paid in compliance with the provisions of Time of Supply :
Section 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:
a) 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
Clause 1 and 4 of Section 31 (Tax Invoice)
:1) A registered person supplying taxable goods shall, before or at the time of,—
a) Removal of goods for supply to the recipient, where the supply involves movement of goods; or
b)delivery of goods or making available thereof to the recipient, in any other case, issue a tax invoice showing the description, quantity and value of goods, the tax
charged thereon and such other particulars as may be prescribed
Section 12 – Time of supply of Goods
Provided that the Government may, on the recommendations of the Council, by notification, specify the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed.
4) Section 31(4) Says that in case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is received.
b) 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.
However, vide Notification no. 40/2017 – Central Tax dated 13 October 2017 read with Notification no. 66/2017 – Central Tax dated 15 November 2017, the supplier of goods has to make payment of tax upon issuance of invoice only under Section 12(2)(a).
Explanation 1.––For the purposes of clauses (a) and (b), “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.
Explanation 2.––For the purposes of clause (b), “the date on which the supplier receives the payment” shall be the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account, whichever is earlier.
3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earliest of the following dates, namely:—
a) the date of the receipt of goods; or
b) the 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; or
c) the date immediately following thirty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier:
Provided that where it is not possible to determine the time of supply under clause (a) or clause (b) or clause (c), the time of supply shall be the date of entry in the books of account of the recipient of supply.
4) In case of supply of vouchers by a supplier, the time of supply shall be—
a) the 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.
5) Where it is not possible to determine the time of supply under the provisions of subsection
(2) or sub-section (3) or sub-section (4), the time of supply shall––
a) in a case where a periodical return has to be filed, be the date on which such return is to be filed; or
b) in any other case, be the date on which the tax is paid.
6) The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier reCcA eAtiulv Kuemsar sGuuptcah addition in value.