Time of Supply - PowerPoint Presentation

Slide1

Time of Supply

Discussion By :

CA Manoj Kumar Goyal

Partner

RHMS & Company

Chartered AccountantsSlide2

Relevance of Time of SupplyTaxable Event Time of Supply is relevant for the purpose of identifying the point of

taxation (Taxable Event).

Tax is levied at the precise time of

occurrence

of an activity.

Liability to pay CGST/SGST on the goods arises at the time of supply.

Time of Supply hold utmost importance for discharging the tax liability.Slide3

Time of Supply is the event which determines the time when the liability to pay tax arises or the tax becomes payable. It is the event on the happening of which liability for payment of tax becomes due.

Liability to pay CGST/SGST

At the Time of Supply

Time of SupplySlide4

Present Vs. Proposed Scenario

Present Indirect Taxation

Manufacturing of Goods

Rendering of Services

Sale of Goods

GST

Supply of Goods and/or Services

In the present indirect tax regime taxable events occur at different levels. Whereas under the proposed GST regime, all the major taxes levied under the indirect taxation i,e. Central excise, Service tax, VAT/CST etc. Would be subsumed under the ambit of GST. They all will loose their relevance & Supply will become the taxable event.

TAXABLE EVENTSlide5

Time of Supply of Goods (Section 12)Scenario Time of SupplyGeneral Provision Date of issue of Invoice OR Last Date on which Invoice is required to be issued OR

Date of Receipt of Payment

}

Whichever earlier

Reverse Charge Date of Receipt of Goods

OR

Date of Payment

OR

Date immediately after

30 Days

from

Date issue of Invoice OR Date of Entry in Books of recipient}

Whichever earlierSlide6

Time of Supply of Goods continued

Scenario Time of Supply

Supply of Voucher Date of issue of Voucher, if Supply is Identifiable

OR

Date of Redemption of Voucher in all other cases

Residual In case of periodical return, the date of return file

OR Date of Payment of CGST/SGSTSlide7

Special NotesNote 1: An amount of up to Rs. 1,000 in excess of the invoice can be adjusted against any current/future invoice.Note 2: Date of Receipt of payment will earlier of the date on which payment is entered in the books of accounts of the supplier or the date on which amount is credited to his bank account.Note 3: Section 28 of the CGST/ IGST Act provides for the time limit (to be prescribed separately) within which an invoice will have to be raised by the supplier of Goods/ Services.

Slide8

Time of Supply Of Services (Section 13)Scenario Time of SupplyGeneral Provision Date of Invoice OR

Last Date on which invoice is required

to be issued under section 28

OR

Date of Receipt of Payment

}

Whichever earlier

Reverse Charge Date of Payment

OR

Date immediately after

60 Days

from Date issue of Invoice OR Date of Debit in Books of Account}

Whichever earlierSlide9

Time of Supply Of Services continuedScenario Time of SupplySupply of Voucher Date of issue of Voucher, if Supply is Identifiable OR Date of Redemption of Voucher in other cases

Residual In case of periodical return, the date of return filing

OR

Date of Payment of CGST/SGSTSlide10

Special NotesNote 1: An amount of up to Rs. 1,000 in excess of the invoice can be adjusted against any current/future invoice.Note 2: Date of Receipt of payment will earlier of the date on which payment is entered in the books of accounts or the date on which amount is credited to his bank account.Note 3: In case of “Associated Enterprises”, where the supplier is located outside India, the Time of Supply will be the date of entry in the books of accounts of the recipient or the date of payment whichever is earlier

.

Note 4: “Associated Enterprise” has the same meaning as assigned to it in section 92 of the Income Tax Act.

Slide11

CA. Manoj Kumar GoyalPartner

RHMS & Company

Chartered Accountants