Recipient is free to reduce the GST charged from the value of invoice and pay only the net amount but liable to discharge the reverse charge obligation separately.
(ICAI FAQ PUBLICATION 06-09-2017 : Levy and collection of tax- FAQ NO. 30)
What will be the time of supply in case of supply of vouchers
In terms of Section 12(4) of the CGST Act, 2017, time of supply of vouchers shall be the earliest of the following:
(a) date of issue of voucher, if the supply is identifiable at that point; or
(b) date of redemption of voucher, in all other cases. Eg: Mr. A buys vouchers from Lifestyle of worth ` 1,000/- for a shirt dated August 01, 2017. Mr. A gifts such vouchers to Mr. B who redeems such vouchers with Amazon India on August 31, 2018. – Time of supply is the date of issue of vouchers viz., August 01, 2017.
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME FOR SUPPLY OF GOODS: FAQ NO. 7)
How can tax paid be recouped and adjusted in case of return of goods attracting reverse charge?
There is no provision in section 34 of the CGST Act or Rule 52 of the CGST
Rules, 2017 regarding reversal of tax paid. Equity demands that relief be allowed to the recipient who has paid the tax so that the recipient may apply for refund under section 54 of the CGST Act and not issue credit note or revised invoice for which there is no provision. This relief to claim refund will be subject to credit not being availed by the recipient on the tax so paid.
(ICAI FAQ PUBLICATION 06-09-2017 : Levy and collection of tax- FAQ NO. 29)
What will be the time of supply where tax is liable to be paid on goods under reverse charge mechanism
In case of tax liable to be paid on goods under reverse charge mechanism, the time of
supply shall be the earliest of the following:
(a) Date of receipt of goods by the recipient; or
(b) Date on which the payment is entered in the books of accounts of the recipient;
or
(c) Date on which payment is debited in the bank account of the recipient; or
(d) Date immediately following 30 days from the date of issue of invoice or any other
document, by whatever name called, in lieu thereof by the supplier.
Where the time of supply cannot be ascertained as above, the date of entry in the
books of accounts of the recipient shall be the time of supply of goods.
To illustrate, Mr. A being registered taxable person procures goods from Mr. B who is
unregistered. The chronology of events are as follows:
| Date of receipt of goods by Mr. A | August 16, 2017 | Time of supply shall be August 16, 2017 |
| Date on which the payment is entered in the books of accounts of Mr. A | August 20, 2017 | |
| Date on which payment is debited in the bank account of Mr. A | August 22, 2017 |
In the event, the above details are not available and the date of entry relating to purchase of goods in the books of Mr. A is August 30, 2017, the time of supply of goods will be August 30, 2017.
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME FOR SUPPLY OF GOODS : FAQ NO. 6)
Is reverse charge applicable on awarding contract or issuing Purchase Order (PO)?
Reverse charge is applicable only when there is a supply. Supply ‘agreed to be made’ is regarded as a supply only in case of supply under section 7(1)(a) and 7(1)(c). Even though actual supply is yet to take place, in the case of supplies covered by these two provisions, tax would be payable on award of contract or issue of PO because this itself amounts to supply. However, Table 4 of GSTR-2 requires reference to be made to invoice in respect of supplies liable to reverse charge but Rule 52 does not provide for issuance of invoice earlier than the time of payment. As such the absence of machinery provisions to pay tax at the time of contract / PO, it appears that the liability fails.
(ICAI FAQ PUBLICATION 06-09-2017 : Levy and collection of tax- FAQ NO. 28)
Is reverse charge applicable after supply or on payment of advance?
Reverse charge is applicable when there is a supply and the time of supply is
determined by section 12 or 13 of the CGST Act. Reverse charge is applicable at the time of advance even though actual supply is yet to take place. Rule 52 provides for the issuance of a Payment Voucher in cases where tax is to be paid on reverse charge basis
(ICAI FAQ PUBLICATION 06-09-2017 : Levy and collection of tax- FAQ NO. 27)
Does tax liability u/s 9(5) come within reverse charge?
No, definition of reverse charge given in section 2(98) refers only to section 9(3) and section 9(4). Tax payment by e commerce operator in case of specified services under section 9(5) would not be a case of reverse charge but a new specie because the e commerce operator facilitates the supply through the digital network and collects payment from recipient and passes it on to supplier.
(ICAI FAQ PUBLICATION 06-09-2017 :Levy and collection of tax- FAQ NO. 26)
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)