CHAPTER 4. TIME OF SUPPLY OF G&S AND CHANGE IN RATES OF TAX
ToS
Time of Supply fixes
the point of time when the liability to charge GST arises. It also indicates
when a supply is deemed to have been made.
(1)ToS of Goods
Liability to pay tax
Liability to pay tax on
goods arises at the time of supply, as determined in accordance with the
provisions of this section.
Time limit to issue
invoice
Invoice is the proof
of sale. Therefore it is important to understand the time limit for issue of
invoice.
1.
Generally:
Case
|
Invoice
must be issued before or at the time of
|
a.
where supply involves movement of goods; or
|
Removal
of goods for supply to the recipient
|
b. in
any other case
|
Delivery
of goods or making available thereof to recipient
|
2.
In case of sale on approval basis:
The invoice shall be issued-
·
Before
or at the time of supply or
·
Six
months from date of removal,
which ever
is earlier
3.
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
In case of supplies in respect of which tax is
paid or liable to be paid on reverse charge basis, the time of supply shall be
the earliest of the following dates, namely:-
a.
DoR,
or
b.
DoP
as entered in the books of account of the recipient or the date on which the
payment is debited in his bank account, whichever is earlier or,
c.
DoI+30
days
DETERMINATION OF ToS
Time of supply shall
be;
earlier of-
a.
DoI
or
b.
DoP
Where
the supplier of taxable goods receives an amount upto Rs. 1000 in excess of the
amount indicated in the tax invoice, the time limit of supply to the extent of
such excess amount shall, at the option of the said supplier, be the date of
issue of invoice in respect of such excess amount.
In
case of part billing or part payment only the part of supply billed/paid is
considered
(2) ToS of Services
Liability to pay tax
Liability to pay tax
on services arises at the time of supply, as determined in accordance with the
provisions of this section.
Time limit to issue
invoice
A registered person
supplying taxable services shall, before or after the provision of service but
within a prescribed period, issue a tax invoice, showing the
description, value, tax charged thereon and such other particulars as may be
prescribed.
·
Normal
Period – 30 days from the date of supply of services
·
Banks
etc. – 45 days from the date of supply of services.( Where the supplier of
services is an insurer or a banking company or a financial institution,
including a non-banking company, the period within which the invoice is to be
issued shall be 45 days from the date of supply of service.
·
Notified
institutions – An insurer or a banking company or a financial institutions including
a non-banking company or a telecom operator or any other class of supplier of
services as may be notified by the Government on the recommendations of the
Council, making taxable supplies or services between distinct persons as specified
in section 25, may issue the invoice-
o
Before
or at the time such supplier records the same in his books of accounts or
o
Before
the expiry of the quarter during which the supply was made.
·
Time
limit to issue invoice in case of continuous supply of service -
Case
|
Issuance of invoice
|
a.
Where the due date of payment is ascertainable from the contract
|
The
invoice shall be issued on or before the due date of payment
|
b.
Where the due date of payment is not ascertainable from the contract
|
The
invoice shall be issued before or at the time when the supplier receives payment
|
c.
Where the payment is linked to the completion of event
|
The
invoice shall be issued on or before the date of completion of that event
|
CHANGES
IN RATES OF TAXES
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