03.04.2022- Learn the concept of Time of Supply under GST

Learn the concept of Time of Supply under GST

In order to calculate and discharge tax liability it is important to know the date when the tax liability arises i.e., the date on which the liability to pay GST occurs. In GST it is known as Time of Supply. Section 12 of CGST Act, 2017 provides the time of supply of goods.

Let us understand the said provision through the practical Case Scenario

Case Scenario: 2

Mr. Sujoy, a person registered under GST, enters into an agreement with Mr. Bijoy of supplying paints and varnishes till the completion of project by Mr. Bijoy. The last date agreed for such supply was 20 June 2021. The following is the timeline of events occurred between Mr. Sujoy and Mr. Bijoy.

Date Particulars Amount (in Rs.)

(exclusive of tax)

12.09.2017 An order to supply 10 boxes of paints was placed 50,000/-
12.09.2017 Bijoy paid an advance to Sujoy 10,000/-
14.09.2017 Sujoy delivered paints to Bijoy
15.09.2017 Payment made by Bijoy to Sujoy 15,000/-
17.09.2017 Sujoy raised tax invoice in respect of supplies 50,000/-
20.09.2017 Balance amount received 25,000/-

Calculate the time of supply.


In the given case, last date to issue invoice is 14.09.2017 under Section 31(1) of CGST Act, 2017 and the same shall be considered to calculate time of supply under Section 12 of CGST Act, 2017.

The time of supply will be calculated as under:

Timeline of Events Date of Invoice u/s 31(1) Date of Payment Time of supply
Advance of Rs. 10,000/- paid on 12.09.17 14.09.2017 12.09.2017 12.09.2017
Payment of Rs. 15,000/- paid on 15.09.17 14.09.2017 15.09.2017 14.09.2017
Payment of Rs. 25,000/- paid on 20.09.17 14.09.2017 20.09.2017 14.09.2017

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