In terms of Section 12(6) of the CGST Act, 2017, the date on which the supplier receives interest, penalty or late fee which forms part of value will be the time of supply.
(ICAI FAQ PUBLICATION 06-09-2017 TIME FOR SUPPLY OF GOODS: FAQ NO. 13)
What will be the Time of supply in case of supply of goods through e-commerce entities
The CGST Act, 2017 does not provide separate provisions for ascertaining time of supply of goods through/by e-commerce entities. Accordingly, the same provisions as to time of supply of goods discussed above will be applicable whether a supplier makes supply through e-commerce entity or the e-commerce entity himself makes the supply.
(ICAI FAQ PUBLICATION 06-09-2017 TIME FOR SUPPLY OF GOODS: FAQ NO. 12)
What will be the time of supply in case of continuous supply of goods
In terms of Section 2(32) of the CGST Act, 2017, ‘continuous supply of goods’ means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may, subject to such conditions, as it may, by notification, specify. Due date for issuance of invoice in terms of Section 31(4) involving successive statement of accounts (SOA) or successive payments is:
Before/ at the time of issue of each SOA or
Before/ at the time of receipt such successive payment
Accordingly, the time of continuous supply of goods, in terms of Section 12 shall be the earliest of the following:
(a) Date of issue of invoice; or
(b) Due date of issue of invoice; or
(c) Date on which payment is entered in books of accounts of the supplier; or
(d) Date on which payment is credited to the bank account.
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME FOR SUPPLY OF GOODS: FAQ NO. 11)
What would be the time of supply where composite supply involves supply of goods as principal supply
The general provisions relating to time of supply of goods will be applicable where composite supply involves goods as principal supply. Accordingly, the time of supply of such composite supply shall be the earliest of the following:
(a) Date of issue of invoice; or
(b) Due date of issue of invoice; or
(c) Date on which payment is entered in books of accounts of the supplier; or
(d) Date on which payment is credited to the bank account of the supplier.
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME FOR SUPPLY OF GOODS: FAQ NO.10)
State whether, Composite supply will attract the provisions pertaining to time of supply of goods or services
In terms of Section 2(30) of the CGST Act, 2017 ‘composite supply’ is defined to mean a supply made by a taxable person to a recipient comprising two or more taxable supplies of goods or services, or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. The illustration appended to the definition of ‘composite supply’ reads as follows:
Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is the principal supply.
Section 8(a) provides that the composite supply whether involves supply of goods or services shall be decided based on the principal supply forming part of ‘composite supply’. In other words, if the composite supply involves supply of services as principal supply, such composite supply would qualify as supply of services and accordingly the provisions relating to time of supply of services would be applicable. Alternatively, if composite supply involves supply of goods as principal supply, such composite supply would qualify as supply of goods and accordingly, the provisions relating to time of supply of goods would be applicable.
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME FOR SUPPLY OF GOODS: FAQ NO. 9)
What is time of supply with respect to amount received in excess of the invoice amount (e.g.: Invoice is issued for ` 5,000 on August 22, 2017 by the supplier. Subsequently, the recipient pays- scenario 1: ` 5,500/- and scenario 2: ` 8,000/-)
In terms of the proviso to Section 12(2) (b) of the CGST Act, 2017, the time of supply with respect to the amount received in excess up to ` 1,000/- of the amount indicated in tax invoice, shall at the option of the supplier, be the date of issue of invoice, in respect of such excess amount. Thus, if the supplier opts for this method, the time of supply will be the date when the supplier raises invoice in respect of the excess amount. Where the excess amount is received exceeds ` 1,000/-, the time of supply of goods shall be the date of receipt i.e., earliest of the following:
(a) Date on which payment is entered in books of accounts of the supplier; or
(b) Date on which payment is credited to the bank account.
Accordingly, the time of supply in each of the scenarios given in the example would be as follows:
Scenario 1: The time of supply of goods with respect to the amount of ` 500/- received
in excess shall be the date of invoice whenever raised by the supplier in respect of the excess amount.
Scenario 2: The time of supply would be as follows:
| Date on which payment is entered in books of accounts of the supplier | August 30, 2017 | Time of supply shall be August 28,2017 |
| Date on which payment is credited to the bank account | August 28, 2017 |
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME FOR SUPPLY OF GOODS : FAQ NO. 8)
What will be the time of supply where multiple invoices are issued for a single consignment involving supply of goods
The time of supply of goods shall be the date of issuance of invoice; or due date for issuance of invoice or receipt of payment by the supplier, whichever is earliest, in relation to the respective invoice.
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME FOR SUPPLY OF GOODS : FAQ NO. 5)
What will be the date of payment to ascertain the time of supply of goods
In terms of the Explanation 2 appended to Section 12, the date of payment shall be the earliest of the following dates:
(a) Date on which payment is entered in books of accounts of the supplier; or
(b) Date on which payment is credited to the bank account.
(ICAI FAQ PUBLICATION 06-09-2017 TIME FOR SUPPLY OF GOODS: FAQ NO. 4)
What would be the ‘due date of issuance of invoice’ with reference to the provisions relating to time of supply of goods
Section 31(1) of the CGST Act, 2017 prescribes the time at which the tax invoice should be issued by a registered taxable person supplying goods. Accordingly, the due date for issuance of invoice would be as follows:
(a) Supply involves movement of goods – It is provided that the tax invoice should be issued before or at the time of removal of goods for supply to the recipient. As such, it is inferred that the date of removal of goods shall be the ‘due date of issuance of invoice’, unless invoice is actually issued before such date.
(b) Any other case – before or at the time of delivery of goods or making goods
available to the recipient. As such, it is inferred that the date on which goods are delivered to the recipient or the date on which goods are made available to the recipient is the ‘due date of issuance of invoice’ , unless invoice is actually issued before such date. Proviso to Section 31(1) of the CGST Act, 2017 also empowers the Government by way of notification, to specify the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed .
(ICAI FAQ PUBLICATION 06-09-2017 TIME OF SUPPLY OF GOODS: FAQ NO. 3)
What will be the time of supply of goods, generally
Generally, in terms of Section 12 of the CGST Act, 2017, the time of supply of goods shall be the earliest of the following:
(a) Date of issue of invoice; or
(b) Due date of issue of invoice; or
(c) Date on which payment is entered in books of accounts of the supplier; or
(d) Date on which payment is credited to the bank account.
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME OF SUPPLY OF GOODS : FAQ NO 2)