Chapter on Time of Supply

Beginning of the Chapter

• Start of new chapter: "Time of Supply"
• Questions arising in the context of GST:
  • At what value will GST be charged?
  • When is the GST liability to be paid?
  • Which GST will be applicable (CGST, SGST, IGST)?

GST Liability

• Information on GST liability:
  • Obtained from Place of Supply.
  • From Time of Supply, information on the delivery and time of payment of goods is obtained.

Example of a General Sale

• Three main things in the sales process:
  1. Delivery of goods
  2. Issuing the invoice
  3. Receiving payment
• GST liability arises when the goods are delivered.

Sections of the Chapter

• Section 12: Time of Supply of goods
• Section 13: Time of Supply of services
• Section 14: Time of change in GST rate
  • Example: If the GST rate changes, which rate will apply at what time?

Explanation of Section 12

• Section 12 includes the following subsections:
  • Subsection 1: Time of GST liability
  • Subsection 2: Date of payment
  • Subsection 3: Date of invoice
• Time of Supply: The earlier of the invoice and payment will be considered as the time.

Example and Conclusion

• If the invoice date is June 5 and payment is made on June 8, the time of supply will be June 5.
• If payment is made on June 2, then the time of supply will be June 2.

Additional Information

• If movement of goods is required, the invoice date should be on the same day when goods are removed.
• If the movement of goods is not happening, it will be assumed when the bill is issued.

Further Discussion

• In the next class, we will talk further about Section 12.
• The importance of the time of supply for GST liability.