1:  What is time of supply?

The time of supply fixes the point when the liability to charge GST arises. It also indicates when a supply is deemed to have been made. The CGST/SGST Act provides separate time of supply for goods and services.

2:  When does the liability to pay GST arise in respect of supply of goods and Services?

Section12 & 13 of the CGST/SGST Act provides for time of supply of goods. The time of supply of goods shall be the earlier of the following namely,

(i) the date of issue of invoice by the supplier or the last date on which he is required under Section 28, to issue the invoice with respect to the supply; or

(ii) the date on which the supplier receives the payment with respect to the supply.

3:  What is time of supply in case of supply of vouchers in respect of goods and services?

The time of supply of voucher in respect of goods and services 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.

4:  Where it is not possible to determine the time of supply in terms of sub-section 2, 3, 4of Section 12 or that of Section 13 of CGST/SGST Act, how will time of supply be determined?

There is a residual entry in Section 12(5) as well as 13 (5) which says that if periodical return has to be filed, then the due date of filing of such periodical return shall be the time of supply. In other cases, it will be the date on which the CGST/SGST/IGST is actually paid.

5:  What does “date of receipt of payment” mean?

It is the earliest of the date on which the payment is entered in the books of accounts of the supplier or the date on which the payment is credited to his bank account.

6:  Suppose, part advance payment is made or invoice issued is for part payment, whether the time of supply will cover the full supply?

No. The supply shall be deemed to have been made to the extent it is covered by the invoice or the part payment.

7:  What is the time of supply of goods in case of tax payable under reverse charge?

The time of supply will be the earliest of the following dates:
a) date of receipt of goods; or
b) date on which payment is made; or
c) the date immediately following 30 days from the date of issue of invoice by the supplier.

8:  What is the time of supply of service in case of tax payable under reverse charge?

The time of supply will be the earlier of the following dates:
a) date on which payment is made; or
b) the date immediately following sixty days from the date of issue of invoice by the supplier.

9:  What is the time of supply applicable with regard to addition in the value by way of interest, late fee or penalty or any delayed payment of consideration?

The time of supply with regard to an addition in value on account of interest, late fee or penalty or delayed consideration shall be the date on which the supplier receipts such additional consideration.

10:  Is there any change in time of supply, where supply is completed prior to or after change in rate of tax?

Yes. In such cases provisions of Section 14 will apply.

11:  What is the time of supply, where supply is completed prior to change in rate of tax?

In such cases time of supply will be
(i) where the invoice for the same has been issued and the payment is also received after the change in rate of tax, the time of supply shall be the date of receipt of payment or the date of issue of invoice, whichever is earlier; or
(ii) where the invoice has been issued prior to change in rate of tax but the payment is received after the change in rate of tax, the time of supply shall be the date of issue of invoice; or
(iii) where the payment is received before the change in rate of tax, but the invoice for the same has been issued after the change in rate of tax, the time of supply shall be the date of receipt of payment;

12:  What is the time of supply, where supply is completed after to change in rate of tax?

In such cases time of supply will be
(i) where the payment is received after the change in rate of tax but the invoice has been issued prior to the change in rate of tax, the time of supply shall be the date of receipt of payment; or
(ii) where the invoice has been issued and the payment is received before the change in rate of tax, the time of supply shall be the date of receipt of payment or date of issue of invoice, whichever is earlier; or
(iii) where the invoice has been issued after the change in rate of tax but the payment is received before the change in rate of tax, the time of supply shall be the date of issue of invoice

13:  Let’s say there was increase in tax rate from 18% to 20% w.e.f.1.6.2017. What is the tax rate applicable when services provided and invoice issued before change in rate in April 2017, but payment received after change in rate in June2017?

The old rate of 18% shall be applicable as services are provided prior to 1.6.2017.

14:  Let’s say there was increase in tax rate from 18% to 20% w.e.f. 1.6.2017. What is the tax rate applicable when goods are supplied and invoice issued after change in rate in June 2017, but full advance payment was already received in April 2017?

The new rate of 20% shall be applicable as goods are supplied and invoice issued after 1.6.2017

15:  What is the time period within which invoice has to be issued for supply of Goods?

As per Section 28 of CGST/SGST Act a registered taxable person shall issue a tax invoice showing description, quantity and value of goods, tax charged thereon and other prescribed particulars, before or at the time of
(a) removal of goods for supply to the recipient, where supply involves movement of goods or
(b) delivery of goods or making available thereof to the recipient in other cases.

16:  What is the time period within which invoice has to be issued for supply of Services?

As per Section 28 of CGST/SGST Act a registered taxable person shall, before or after the provision of service, but within a period prescribed in this behalf, issue a tax invoice showing description, value of goods, tax payable thereon and other prescribed particulars.

17:  What is the time period within which invoice has to be issued in a case involving continuous supply of goods?

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.

18:  What is the time period within which invoice has to be issued in a case involving continuous supply of services?

In case of continuous supply of services,
(a) where the due date of payment is ascertainable from the contract, the invoice shall be issued before or after the payment is liable to be made by the recipient but within a period prescribed in this behalf whether or not any payment has been received by the supplier of the service;
(b) where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or after each such time when the supplier of service receives the payment but within a period prescribed in this behalf;
(c) where the payment is linked to the completion of an event, the invoice shall be issued before or after the time of completion of that event but within a period prescribed in this behalf.

19:  What is the time period within which invoice has to be issued where the goods being sent or taken on approval for sale?

The invoice in respect of goods sent or taken on approval for sale or return shall be issued before or at the time of supply or six months from the date of approval, whichever is earlier.

20:  What is relevance of “time of supply” in GST?

In GST regime, liability to pay tax on taxable supply is decided by time of supply.  Therefore, time of supply plays a pivotal role in GST.

21:  What is time of supply in respect to supply of goods?

As per provisions of section12 of the CGST Act, 2017 the liability to pay tax on supply of goods is directly dependent on time of supply of such goods.  Therefore, time of supply of goods shall be the earlier of the following, namely:

(i) the date of issue of invoice by the supplier or the last date on which he is required, under Section 31, to issue the invoice with respect to the supply; or

(ii) The date on which the supplier receives the payment with respect to the supply.

22:  When it shall be considered that supplier has received the payment?

As per explanation 2 to sub- section 2 of Section 12 of CGST Act, 2017, “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.

23:  What is time of supply in respect to supply of services?

As per provisions of section13 of the CGST Act, 2017 the liability to pay tax on supply of services is directly dependent on time of supply of such goods.  Therefore, time of supply of services shall be the earlier of the following, namely:

1. the date of issue of invoice by the supplier or the last date on which he is required, under Section 31, to issue the invoice with respect to the supply; or
2. In case invoice is not issued within time period as specified under section 31, the date of provision of service on which the supplier receives the payment with respect to the supply or
3.  In any other case, date where recipient shows the receipt of service in his books of account.

24:  What is meant by vouchers?

As per section 2 (118) of CGST Act, 2017, “voucher” means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument.

25:  How time of supply shall be ascertained, in case there is change in rate of tax subsequent to supply?

As per clause (a) of section 14 of CGST Act, 2017, in case the goods or services or both have been supplied before the change in rate of tax, time of supply shall be

1. Where the invoice for the same has been issued and the payment is also received after the change in rate of tax, the time of supply shall be the date of receipt of payment or the date of issue of invoice, whichever is earlier; or
2. Where the invoice has been issued prior to the change in rate of tax but payment is received after the change in rate of tax, the time of supply shall be the date of issue of invoice; or
3. Where the payment has been received before the change in rate of tax, but the invoice for the same is issued after the change in rate of tax, the time of supply shall be the date of receipt of payment.

26:  How time of supply shall be ascertained, in case there is change in rate of tax before completion of supply?

As per clause (b) of section 14 of CGST Act, 2017, in case the goods or services or both have been supplied after the change in rate of tax, the time of supply shall be:

1. Where the payment is received after the change in rate of tax but the invoice has been issued prior to the change in rate of tax, the time of supply shall be the date of receipt of payment; or
2. Where the invoice has been issued and payment is received before the change in rate of tax, the time of supply shall be the date of receipt of payment or date of issue of invoice, whichever is earlier; or
3.  Where the invoice has been issued after the change in rate of tax but the payment is received before the change in rate of tax, the time of supply shall be the date of issue of invoice.

27:  What is the stipulated time period as per section 31 of CGST Act, 2017 within which invoice shall be issued for supply of Goods?

As per sub- section (1) of Section 31 of CGST Act, 2017, A registered person supplying taxable goods shall issue invoice, 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.

28:  What is the stipulated time period within which invoice has to be issued in case of supply of Services?

As per sub- section (2) of Section 31 of CGST Act, 2017, a registered taxable person shall, before or after the provision of service, but within a period prescribed in this behalf, issue a tax invoice showing  description, value of goods, tax payable thereon and other prescribed particulars.

29:  What is the relevance of place of supply in GST regime?

Place of supply determines whether the supply is intra- state or inter- state supply and accordingly tax shall be levied and collected.

30:  What is “outward supply” under GST regime?

As per the provisions of section 2 (83) of CGST Act, 2017, “Outward Supply” in relation to a taxable person, means supply of goods or services or both, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other mode, made or agreed to be made by such person in the course or furtherance of business.

31:  What is “inward supply” under GST regime?

As per the provisions of section 2 (67) of CGST Act, 2017, “inward supply” in relation to a person, shall mean receipt of goods or services or both whether by purchase, acquisition or any other means with or without consideration.

32:  What is “inward supply” under GST regime?

As per the provisions of section 2 (67) of CGST Act, 2017, “inward supply” in relation to a person, shall mean receipt of goods or services or both whether by purchase, acquisition or any other means with or without consideration.

33:  What shall be the place of supply in case supply involves movement of goods within India?

As per the clause (a) of sub- section (1) of section 10 of IGST Act, 2017, where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient.

34:  What shall be the place of supply in case goods are delivered, within India, to the recipient or to any other person on the direction of third person?

As per the clause (b) of sub- section (1) of section 10 of IGST Act, 2017, where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person.

35:  What shall be the place of supply in case goods are assembled or installed at site?

As per the clause (d) of sub- section (1) of section 10 of IGST Act, 2017, where the goods are assembled or installed at site, the place of supply shall be the place of such installation or assembly.

36:  What shall be the place of supply in case goods are supplied on board a conveyance?

As per the clause (e) of sub- section (1) of section 10 of IGST Act, 2017, where the goods are supplied on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, the place of supply shall be the location at which such goods are taken on board.

37:  What shall be the place of supply in case goods are imported into India?

As per the provisions of section 11(a) of IGST Act, 2017, in case goods are imported into India, the place of supply of goods shall be the location of the importer.

38:  What shall be the place of supply in case goods are exported outside India?

As per the provisions of section 11(b) of IGST Act, 2017, in case goods are exported outside India, the place of supply of goods shall be the location outside India.

39:  What is the general rule with respect to place of supply in case services are provided with in India?

As per the provisions of section 12 (2) of IGST Act, 2017,

1. Where services is made to a registered person, place of supply shall be the location of such person.
2. Where services is made to any person other than a registered person, place of supply shall be;

         (i)  The location of the recipient where the address on record exists; and

         (ii) The location of the supplier of services in other cases.

40:  What shall be the place of supply in case of services pertaining to immoveable property?

As per the provisions of section 12 (2) of IGST Act, 2017, place of supply of services

1. Directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work; or
2. By way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, by whatever name called, and including a house boat or any other vessel; or
3. By way of accommodation in any immovable property for organising any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property; or
4. Any services ancillary to the services referred to in clauses (a), (b) and (c),

Shall be the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be located.

41:  What shall be the place of supply in case of restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery?

As per the provisions of section 12 (4) of IGST Act, 2017, the place of supply of restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery shall be the location where the services are actually performed.

42:  Whether the place of supply of services in relation to training and performance appraisal will be same if supplied to registered or unregistered person?

According to the provisions of sub- section (5) of section 12 of IGST Act, 2017, the place of supply of services in relation to training and performance appraisal made to:

 (a) A registered person shall be the location of such person;

(b) A person other than a registered person shall be the location where the services are actually performed.

43:  Whether place of supply will be different in case of organisation of cultural, artistic, scientific event and admission to such event?

Yes, admission to cultural, artistic, scientific, educational event is governed by the provisions of sub- section (6) of section 12 of IGST Act, 2017, whereas organisation of such events is governed by the provisions of sub- section (7) of section 12 of IGST Act, 2017.

44:  What will be the place of supply in case of admission to cultural, artistic, scientific event?

As per the provisions of sub- section (6) of section 12 of IGST Act, 2017, the place of supply of services provided by way of admission to a cultural, artistic, sporting, scientific, educational, entertainment event or amusement park or any other place and services ancillary thereto, shall be the place where the event is actually held or where the park or such other place is located.

45:  What will be the place of supply in case of organisation of cultural, artistic, scientific event?

As per the provisions of sub- section (7) of section 12 of IGST Act, 2017, where the services provided by way of:

(a) Organisation of a cultural, artistic, sporting, scientific, educational or entertainment event including supply of services in relation to a conference, fair, exhibition, celebration or similar events; or

(b) Services ancillary to organisation of any of the events

The determination of place of supply shall be dependent on whether recipient is registered person or not. In case service is made to a registered person, place of supply shall be the location of such person. However, if service is made to a person other than a registered person, place of supply shall be the place where the event is actually held and if the event is held outside India, the place of supply shall be the location of the recipient.

46:  What will be the place of supply in case of goods transport agency?

As per the provisions of sub- section (8) of section 12 of IGST Act, 2017, the place of supply of services, by way of transportation of goods, including by mail or courier, made to:

(a) A registered person, shall be the location of such person;

(b) A person other than a registered person, shall be the location at which such goods are handed over for their transportation.

47:  What will be consequences in case goods are transported other than mail or courier and location of either supplier or recipient is outside India?

As per the provisions of sub- section (9) of section 13 of IGST Act, 2017, the place of supply of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of such goods.

48:  What will be the place of supply in case of passenger transportation service?

As per the provisions of sub- section (9) of section 12 of IGST Act, 2017, the place of supply, of passenger transportation service, made to:

(a) A registered person, shall be the location of such person;

(b) A person other than a registered person, shall be the place where the passenger embarks on the conveyance for a continuous journey.

However, where location of either supplier or recipient is outside India, provisions of sub- section (10) of section 13 IGST shall be applicable. Accordingly, the place of supply in respect of passenger transportation services shall be the place where the passenger embarks on the conveyance for a continuous journey.

49:  What will be place of supply if services consist of hiring of means of transport?

As per the provisions of sub- section (8) of section 13 of IGST Act, 2017, place of supply of services consisting of hiring of means of transport, including yachts but excluding aircrafts and vessels, up to a period of one month, shall be the location of the supplier of services.

50:  What is meant by Continuous journey?

As per the provisions of sub- section (3) of section 2 of IGST Act, 2017 “continuous journey” means a journey for which a single or more than one ticket or invoice is issued at the same time, either by a single supplier of service or through an agent acting on behalf of more than one supplier of service, and which involves no stopover between any of the legs of the journey for which one or more separate tickets or invoices are issued.

51:  Whether return journey shall be considered as part of onward journey, if both issued at same time?

As per explanation to sub- section (9) of section 12 of IGST Act, 2017, the return journey shall be treated as a separate journey, even if the right to passage for onward and return journey is issued at the same time.

52:  How place of supply shall be determined where telecommunication services are provided by way of fixed line or leased circuits, cable or dish antenna?

As per provisions of clause (a) of sub- section (10) of section 12 of IGST Act, 2017, the place of supply of telecommunication services including data transfer, broadcasting, cable and direct to home television services, supplied to any person by way of fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna, shall be the location where the telecommunication line, leased circuit or cable connection or dish antenna is installed for receipt of services.

53:  What shall be the place of supply, where mobile connection for telecommunication and internet services are provided on post- paid basis?

As per provisions of clause (b) of sub- section (10) of section 12 of IGST Act, 2017, in case of mobile connection for telecommunication and internet services are provided on post-paid basis, place of supply shall be the location of billing address of the recipient of services on the record of the supplier of services.

54:  How place of supply shall be determined where mobile connection is provided on pre- payment basis?

In cases where mobile connection for telecommunication, internet service and direct to home television services are provided on pre-payment basis through a voucher or any other means:

(i)  Either through a selling agent or a distributor of subscriber identity module card or re-charge voucher, place of supply shall be the address of the selling agent or re-seller or distributor as per the record of the supplier at the time of supply; or

(ii)  Or by any person to the final subscriber, place of supply shall be the location where such prepayment is received or such vouchers are sold.

55:  Nowadays, recharge or pre- payment is easily made through use of internet banking or other electronic mode of payment, in such cases how place of supply shall be determined?

As per second proviso to clause (d) of sub- section (10) of section 12 of IGST Act, 2017, where such pre-paid service is availed or the recharge is made through internet banking or other electronic mode of payment, the location of the recipient of services on the record of the supplier of services shall be the place of supply of such services.

56:  How place of supply shall be ascertained in case of banking and other financial services?

According to sub- section (12) of section 12 of IGST Act, 2017, the place of supply, in case of banking and other financial services, including stock broking services made to any person, shall be the location of the recipient of services on the records of the supplier of services.

However, if the location of recipient of services is not on the records of the supplier, the place of supply shall be the location of the supplier of services.

Further, as per sub- section (8) of section 13 of IGST Act, 2017, place of supply of services supplied by a banking company, or a financial institution, or a non-banking financial company, to account holders shall be the location of the supplier of services.

57:  What will be place of supply in case of insurance services?

In case insurance services are supplied to a registered person, the place of supply shall be the location of such person. However, if same is supplied to a person other than a registered person, place of supply shall be the location of the recipient of services on the records of the supplier of services.

58:  What will be place of supply in case location of supplier or location of recipient is outside India?

Place of supply of services where location of supplier or location of recipient is outside India, is govern by the provisions of section 13 of IGST Ac, 2017. As per this section, location of recipient shall be the place of supply. However, where location of recipient is not available, then location of supplier shall be place of supply of services.

59:  What shall be place of supply where services are supplied in respect of goods?

As per sub- section (3) of section 13 of IGST Act, 2017, services supplied  with respect to goods which are required to be made physically available by the recipient of services, place of supply in such case shall be location where services are actually performed by supplier of services or person acting on behalf of the supplier of services.

60:  Whether place of supply of services in respect to goods will change, where services are provided from remote location by way of electronic means?

Yes, when such services are provided from a remote location by way of electronic means, the place of supply shall be the location where goods are situated at the time of supply of services.

61:  What shall be the place of supply in case of online information and database access or retrieval services (OIDR)?

According to sub- section (12) of section 13 of IGST Act, 2017, the place of supply of online information and database access or retrieval services (OIDR) shall be the location of the recipient of services.

However, as per Section 14 (1) of IGST Act, 2017, where such OIDR services are provided by any person located in a non-taxable territory and received by a non-taxable online recipient, the supplier of services located in a non-taxable territory shall be the person liable for paying integrated tax on such supply of services.