The time of supply of goods and services under GST is determined based on the date of issuance of invoice or payment, whichever is earlier. If the invoice is issued within the prescribed period, the supply is deemed to have taken place on the date of issuance of the invoice. If the invoice is not issued within the prescribed period, the supply is deemed to have taken place on the date of payment.
The GST law provides for two types of time of supply, namely, normal time of supply and reverse charge mechanism time of supply. The normal time of supply applies in cases where the supplier has issued an invoice within the prescribed time period and the recipient has made the payment. The reverse charge mechanism time of supply applies in cases where the recipient is liable to pay the tax on behalf of the supplier.
In the case of goods, the time of supply is determined based on the date of removal of goods from the place of business of the supplier. In the case of services, the time of supply is determined based on the date on which the service is performed.
The GST law also provides for advance payment, partial payment, and deferred payment. In the case of advance payment, the time of supply is determined based on the date of receipt of payment. In case of partial payment, the time of supply is determined based on the date of receipt of each payment. In the case of deferred payment, the time of supply is determined based on the date of payment.
In case of a continuous supply of goods or services, the time of supply is determined based on the date on which the supply is completed.
In conclusion, the time of supply under GST is a crucial aspect for determining the liability to pay tax and for claiming input tax credit. It is important for taxpayers to be aware of the provisions of time of supply under GST and to comply with the same to avoid any penal consequences.