13.2 Determination of time of supply on services in case of forward charge

Example-1

Determine the time of supply in the following cases

Question-1 [ICSI-P-J18-5b-3] [ICMAI-F-D18-5b-4] [Inv issued after due date]

Harivallabh, a registered supplier, rendered taxable service for Rs.2 lakhs on 1-11-2017. The tax invoice was raised on 9-12-2017. Payment was received the next day. Ascertain the time of supply for GST purposes.

Answer

1) Statutory Provision

(i) Section-13(2)(a) - If invoice is issued within 30 days of supply of service as per section 31, TOS shall be earlier of

date of issue of invoice or

date of receipt of payment

(ii) Section-13(2)(b) - If invoice is not issued within 30 days of supply of service as per section 31, TOS shall be earlier of

date of supply of service, or

date of receipt of payment, or

(iii) Section 31(2) read with Rule 47 - RP supplying taxable services shall issue a tax invoice, before supply of service or within 30 days after the date of supply of service.

2) Facts & Advice

Date of supply of service = 01-11-2017

Due date of issue of invoice = 01-12-2017

Date of issue of Invoice = 09-12-2017

Date of receipts of payment = 10-12-2017

In the given case, invoice was issued after due date, hence time of supply of services shall be 01-11-2017 i.e. earlier of

date of supply of service (01-11-2017), or

date of receipt of payment (10-12-2017)

Question-1A [ICSI-E-D19-O-90-1]

What is the time of supply of service in the following case:

Date of issue of invoice 31-12-2018; Date of receipt of payment by supplier of service 20-12-2018. Date of provision of service 25-11-2018; and date of order 30-12-2018.

(A) 31-12-2018 (B) 20-12-2018 (C) 25-11-2018 (D) 30-12-2018

Answer

1) Statutory Provision

(i) Section-13(2)(a) - If invoice is issued within 30 days of supply of service as per section 31, TOS shall be earlier of

date of issue of invoice or

date of receipt of payment

(ii) Section-13(2)(b) - If invoice is not issued within 30 days of supply of service as per section 31, TOS shall be earlier of

date of supply of service, or

date of receipt of payment, or

(iii) Section 31(2) read with Rule 47 - RP supplying taxable services shall issue a tax invoice, before supply of service or within 30 days after the date of supply of service.

2) Facts & Advice

Date of supply of service = 25-11-2018

Due date of issue of invoice = 25-12-2018

Date of issue of Invoice = 31-12-2018

Date of receipts of payment = 20-12-2018

In the given case, invoice was issued after due date, hence time of supply of services shall be 25-11-2018 i.e. earlier of

date of supply of service (25-11-2018), or

date of receipt of payment (20-12-2018)

Question-1B [ICAI-I-Ch5-11]

Modern Security Co. provides service of testing of electronic devices. In one case, it tested a batch of devices on 4th and 5th Sep but could not raise invoice till 19th Nov because of some dispute about the condition of the devices on return. The payment was made in Dec.

What is the method to fix the time of supply of the service?

Answer

(1) Statutory Provision

(i) Section-13(2)(a) - If invoice is issued within 30 days of supply of service as per section 31, TOS shall be earlier of

date of issue of invoice or

date of receipt of payment

(ii) Section-13(2)(b) - If invoice is not issued within 30 days of supply of service as per section 31, TOS shall be earlier of

date of supply of service, or

date of receipt of payment, or

(2) Facts and Conclusion

(3) Conclusion

Since invoice was not issued within due date as per section 13(2), hence TOS shall be 5^th Sep i.e. earlier of date of provision of service, or date of receipt of payment.

Question-2 [ICAI-I-Ch5-6] [Inv issued after due date but advance received]

Raju Pvt Ltd. receives the order and advance payment on 5th Jan for carrying out an architectural design job. It delivers the designs on 23rd April. By oversight, no invoice is issued at that time, and it is issued much later, after the expiry of prescribed period for issue of invoice. When is the time of supply of service?

Answer

(1) Statutory Provision

(i) Section-13(2)(a) - If invoice is issued within period prescribed u/s 31, TOS shall be earlier of

date of issue of invoice or

date of receipt of payment

(ii) Section-13(2)(b) - If invoice is not issued within period prescribed u/s 31, TOS shall be earlier of

date of supply of service, or

date of receipt of payment, or

(2) Facts

(3) Conclusion

Since invoice was not issued within due date as per section 13(2), hence TOS shall be 5^th Jan i.e. earlier of date of provision of service, or date of receipt of payment.

Question-2A [ICSI-P-J21-3e(iv)-1]

Saroj consultancy services received advance of 50,000 from clients on 31.12.2020 for services to be rendered in the month of March, 2021. Determine TOS. [Ans: 31.12.2020]

Question-3 [ICAI-F-M18-O-4b-4] [Partly Advance & Inv issued after due date]

Determine the time of supply from the following particulars:

Answer

(1) Statutory Provision

(i) Section-13(2)(a) - If invoice is issued within 30 days of supply of service as per section 31, TOS shall be earlier of

date of issue of invoice or

date of receipt of payment

(ii) Section-13(2)(b) - If invoice is not issued within 30 days of supply of service as per section 31, TOS shall be earlier of

date of supply of service, or

date of receipt of payment, or

(2) Facts and Conclusion

(3) Conclusion

Since invoice was not issued within due date as per section 13(2), hence TOS shall be earlier of date of provision of service, or date of receipt of payment.

(a) For Rs.20,000 – 8^th Sep

(b) For Rs.1,00,000 – 2^nd Nov

Question-3A [ICSI-P-J21-O-4c-5]

Ganesh booked a marriage hall for a total rent of Rs.70,000 by paying an advance of Rs.20,000 on 7th June, 2020. The marriage was held on 16th Oct, 2020. The owner of the hall issued an invoice on 28th Nov, 2020 for the total rent of Rs.70,000 by mentioning that Rs.50,000 is due from Ganesh after adjusting the advance. The balance Rs.50,000 was received from Ganesh on 4th Dec, 2020. Determine the time of supply.

Question-3B [ICSI-P-D21-O-3d(i)-3]

M’ booked a banquet hall on 5th July, 2020 for an agreed sum of Rs.25,000 and paid an advance of Rs.6,000 on that date. Function held in the banquet hall on 14th Aug, 2020. Thereafter, on 26th Sep, 2020 the owner of convention hall issued invoice for Rs.25,000 indicating balance of Rs.19,000 is payable. ‘M’ paid the balance payment on 2nd Nov, 2020. Determine time of supply in this case under GST Law.

Question-3C [ICSI-E-J21-O-80-1]

Determine the time of supply from the following particulars :  

(A) The time of supply of service to the extent of advance amount received is 7th May and the time of supply of service to the extent of the balance amount is 16th September

(B) The time of supply is 16th September for the all amount

(C) The time of supply is 28th October

(D) The time of supply is 4th November

Question-4 [ICSI-E-D20-69-1] [Partly Advance & Inv issued on or before due date]

An advance of Rs.75,000 was received on 25th Aug, 2019 against the services rendered on 12th Sep, 2019 for the total value of Rs.3,00,000. Invoice was also issued on the same day being 12th Sep, 2019 and the balance payment of Rs.2,25,000 was received on 18th Sep, 2019. The time of supply and the value of supply under CGST Act, 2017 shall be :

(A) 12th Sep, 2019; Rs.3,00,000

(B) 25th Aug, 2019; Rs.3,00,000

(C) 25th Aug, 2019; Rs.75,000 and 12th Sep, 2019; Rs.2,25,000

(D) 18th Sep, 2019; Rs.3,00,000

Answer

(1) Statutory Provision

(i) Section-13(2)(a) - If invoice is issued within 30 days of supply of service as per section 31, TOS shall be earlier of

date of issue of invoice or

date of receipt of payment

(ii) Section-13(2)(b) - If invoice is not issued within 30 days of supply of service as per section 31, TOS shall be earlier of

date of supply of service, or

date of receipt of payment, or

(2) Facts and Conclusion

(3) Conclusion

Since invoice was issued within due date as per section 13(2), hence TOS shall be earlier of date of invoice, or date of receipt of payment.

(a) For Rs.75,000 – 25^th Aug

(b) For Rs.2,25,000 – 12^th Sep

Question-5 [ICAI-I-Ch5-12] [Misc Quesiton]

XYZ & Co., a firm of Chartered Accountants, issued invoice for services rendered to Mr. A on 7th Sep. Determine the time of supply in the following independent cases:

(1) The provision of service was completed on 1st Aug and payment was received on 28th Sep.

(2) The provision of service was completed on 14th Aug and payment was received on 28th Sep.

(3) Mr. A made the payment on 3rd Aug. However, provision of service was remaining to be completed at that time.

(4) Mr. A made the payment on 15th Sep. However, provision of service was remaining to be completed at that time

Answer

(1) Statutory Provision

(i) Section-13(2)(a) - If invoice is issued within 30 days of supply of service as per section 31, TOS shall be earlier of

date of issue of invoice or

date of receipt of payment

(ii) Section-13(2)(b) - If invoice is not issued within 30 days of supply of service as per section 31, TOS shall be earlier of

date of supply of service, or

date of receipt of payment, or

(2) Facts and Conclusion

Remark

(1) 1st Aug since the invoice is not issued within 30 days of supply of service.

(2) 7th Sept since the invoice is issued within 30 days of supply of service and the payment is received after the issuance of invoice.  

(3) 3rd Aug viz., earlier of date of issuance of invoice (7th Sep) or date of receipt of payment (3rd Aug)

(4) 7th Sep viz., earlier of date of issuance of invoice (7th Sep) or date of receipt of payment (15th Sep

Quesiton-5A [ICAI-I-N18-O-8b-5]

Mr. XYZ & Co., a firm of Chartered Accountants, issued invoice for services rendered to Mr. A on 7th Sep, 2017. Determine the time of supply in the following independent cases:

(1) The provision of service was completed on 1st Aug, 2017. [Ans 01-08-2017]

(2) The provision of service was completed on 14th Aug, 2017. [Ans 07-09-2017]

(3) Mr. A made the payment on 3rd Aug, 2017 where provision of service was remaining to be completed. [Ans 03-08-2017]

(4) Mr. A made the payment on 15th Sep, 2017 where provision of service was remaining to be completed. [Ans 07-09-2017]

Question-5B [ICSI-P-D20-3b-4]

Determine the time of supply (TOS) by giving reason in brief in each of the following cases in accordance with the provisions in CGST Act, 2017:

Question-6 [ICAI-I-Ch5-Ill-6] [Clause c]

Investigation shows that ABC & Co carried out service of cleaning and repairs of tanks in an apartment complex, for which the Apartment Owners’ Association showed a payment in cash on 4^th April to them against work of this description. The dates of the work are not clear from the records of ABC & Co. ABC & Co have not issued invoice or entered the payment in their books of account.

Answer

The time of supply cannot be determined vide the provisions of clauses 13(2)(a) and (b) as neither the invoice has been issued nor the date of provision of service is available as also the date of receipt of payment in the books of the supplier is also not available. Therefore, the time of supply will be determined vide clause 13(2)(c) i.e., the date on which the recipient of service shows receipt of the service in his books of account.

Thus, time of supply will be 4^th April, the date on which the Apartment Owners’ Association records the receipt of service in its books of account.

Question-7 [ICAI-F-Ch6-5] [Construction contract] [Continuous supply of Services]

Renudhoot Ltd. enters into a contract with XYZ Ltd. on 2nd July 2020 for a period of 2 years for construction of a new building - to be used for commercial purposes - for a total consideration of Rs.150 lakh. As per the terms of contract, Renduhoot Ltd. is required to make payment at different stages of completion of the building namely, 50%, 75% and 100%.

Determine the time of supply using relevant details given as under:

Answer

(1) Statutory Provision

(i) Section-13(2)(a) - If invoice is issued within period prescribed u/s 31, TOS shall be earlier of

date of issue of invoice or

date of receipt of payment

(ii) Section-13(2)(b) - If invoice is not issued within period prescribed u/s 31, TOS shall be earlier of

date of supply of service, or

date of receipt of payment, or

(iii) Section 31(5)(c) –in case of continuous supply of services, the invoice should be issued either (i) on/ before the due date of payment or (ii) before/ at the time when the supplier of service receives the payment, if the due date of payment is not known (iii) on/ before the date of completion of the milestone event when the payment is linked to completion of an event.

13.3 Time of supply of service in case of Reverse Charge

[T-1] [ICSI-P-D19-O-4c(i)-3]

Explain the relevant provision of Section 13(3) of the CGST, Act 2017 regarding determination of time of supply of service under reverse charge basis.

Quesiton-1 [ICSI-E-J21-62-1]

What is the time of supply of service under reverse charge mechanism?

(A) 60 days from the date of service

(B) 90 days from the date of service

(C) 60 days from the date of invoice and date of payment – whichever is earlier

(D) 90 days from the date of service and date of payment – whichever is earlier

Quesiton-2 [ICAI-I-Ch5-4]

Determine the time of supply in the following cases assuming that GST is payable under reverse charge:

Question-3 [ICAI-I-M18-O-9a-3]

On 4th Sep, 2017, V.R. Mehman a famous music composer, received Rs.3 crore of consideration from Zilmil Music Co. Ltd. for sale of copyright of his original music album. He finished his work & made available the CD to the music company on 20th July, 2017 & raised the invoice on 24th July, 2017. What will be the time of supply as per CGST Act, 2017?

Note: Above service is taxable under reverse charge basis.

Answer

(1) Statutory Provision

(i) Section 13(3) - In case of supplies taxable on RCM basis, time of supply shall be the earlier of:–

(a) date of payment as entered in the books of recipient or debit date of payment in his bank account; or

(b) date immediately following 60 days from date of invoice or any other document

(2) Facts

(i) Date of payment by recipient – 4^th Sep, 2017

(ii) 61 days from invoice date = 24^th Jul + 61 = 23^rd Sep, 2017

(3) Conclusion

TOS shall be earlier of above = 4^th Sep, 2017

Question-3A [ICAI-I-Ch5-Ill-7]

Determine the time of supply from the given information. (Assume that service being supplied is taxable under reverse charge)

4^th May - The supplier of service issues invoice for service provided. There is a dispute about amount payable, and payment is delayed.

21^st Aug - Payment made to the supplier of service

Answer

(1) Statutory Provision

(i) Section 13(3) - In case of supplies taxable on RCM basis, time of supply shall be the earlier of:–

(a) date of payment as entered in the books of recipient or debit date of payment in his bank account; or

(b) date immediately following 60 days from date of invoice or any other document

(2) Facts

(i) Date of payment by recipient – 21^st Aug

(ii) 61 days from invoice date = 4^th May + 61 = 4^th Jul

(3) Conclusion

TOS shall be earlier of above = 4^th Jul

Question-3B [ICAI-I-Ch5-10]

A firm of advocates issues invoice for services to ABC Ltd. on 17th Feb. The payment is contested by ABC Ltd. on the ground that on account of negligence of the firm, the company’s case was dismissed by the Court for non-appearance, which necessitated further appearance for which the firm is billing the company. The dispute drags on and finally payment is made on 3rd Nov. Identify the time of supply of the legal services.

Answer

(1) Statutory Provision

(i) Section 13(3) - In case of supplies taxable on RCM basis, time of supply shall be the earlier of:–

(a) date of payment as entered in the books of recipient or debit date of payment in his bank account; or

(b) date immediately following 60 days from date of invoice or any other document

(2) Facts

(i) Date of payment by recipient – 3^rd Nov

(ii) 61 days from invoice date = 17^th Feb + 60 = 19^th Apr

(3) Conclusion

TOS shall be earlier of above = 19^th Apr

Question-3C [ICSI-P-D22-2A(i)-5]

Determine the time of supply under CGST Act, 2017 by giving reason in brief in the following independent cases assuming that GST is payable under RCM

Answer

(1) Statutory Provision

Section 13(3) - In case of supplies taxable on RCM basis, time of supply shall be the earlier of:–

(a) date of payment as entered in the books of recipient or debit date of payment in his bank account; or

(b) date immediately following 60 days from date of invoice or any other document

Question-4 [ICAI-I-Ch5-5] [Delay in service]

Kabira Industries Ltd engaged the services of a transporter for road transport of a consignment on 17th June and made advance payment for the transport on the same date, i.e. 17^th June. However, the consignment could not be sent immediately on account of a strike in the factory, and instead was sent on 20th July. Invoice was received from the transporter on 22nd July. What is the time of supply of the transporter’s service?

Answer

(1) Statutory Provision

(i) Section 13(3) - In case of supplies taxable on RCM basis, time of supply shall be the earlier of:–

(a) date of payment as entered in the books of recipient or debit date of payment in his bank account; or

(b) date immediately following 60 days from date of invoice or any other document

(2) Facts

(i) Date of payment by recipient – 17^th June

(ii) 61 days from invoice date = 22^nd Jul + 60 = 20^th Aug

(3) Conclusion

TOS shall be earlier of above = 17^th Jun

Question-5 [ICAI-I-Ch5-13] [ICAI-I-N19-O-7b-4] [Determination of RCM supply]

M/s Pranav Associates, a partnership firm, provided recovery agent services to Newtron Credits Ltd., a non-banking financial company and a registered supplier, on 15th Jan. Invoice for the same was issued on 7th Feb and the payment was made on 18th April by Newtron Credits Ltd. Bank account of the company was debited on 20th April.

Determine the following: (i) Person liable to pay GST (ii) Time of supply of service

Answer

(1) Statutory Provision

(i) Tax on services supplied by a recovery agent to, inter alia, a non-banking financial company (NBFC) is payable under RCM by such NBFC. Therefore, in the given case, person liable to pay GST is the NBFC - Newton Credits Ltd.

(ii) Section 13(3) - In case of supplies taxable on RCM basis, time of supply shall be the earlier of:–

(a) date of payment as entered in the books of recipient or debit date of payment in his bank account; or

(b) date immediately following 60 days from date of invoice or any other document

(2) Facts

(i) Date of payment by recipient – 18^th April/ 20^th April

(ii) 61 days from invoice date = 7^th Feb + 61 = 9^th Apr

(3) Conclusion

TOS shall be earlier of above = 9^th Apr

Question-6 [ICAI-I-N19-6b-4] [Determination of RCM supply and Partly Advance]

Know & Grow publishers, a registered dealer in India, paid and advance Rs.50,000 to Mr. Ganatra, an author, for the copyright covered u/s 13(1)(a) of the Copyright Act, 1957, of his original literary work on 5-9-2018. It made the balance payment Rs.1,50,000 on 12-12-2018. You are required to determine the time of supply, if Mr. Ganatra raised the invoice on:

(i) 6-10-2018, or (ii) 17-12-2018.

Answer

GST on supply of services by an author by way of transfer or permitting the use or enjoyment of a copyright covered under section 13(1)(a) of the Copyright Act, 1957 relating to original literary works to a publisher is payable under reverse charge by such publisher, i.e. Know & Grow Publishers.

(1) Statutory Provision

Section 13(3) - In case of supplies taxable on RCM basis, time of supply shall be the earlier of:–

(a) date of payment as entered in the books of recipient or debit date of payment in his bank account; or

(b) date immediately following 60 days from date of invoice or any other document

(2) Facts and Conclusion

Assuming invoice was issued within due date.

Question-7 [ICSI-P-D19-O-4c(ii)-2] [RCM on Import of services]

Ganesh, a registered person, has received the supply of services from non-taxable territory. Accordingly the tax is liable to be paid by the recipient on reverse charge basis. Ganesh provides the following information in respect of such service received by him :

Transaction/Event Date

You are required to :

(i) Explain the relevant provision of Section 13(3) of the CGST, Act 2017 regarding determination of time of supply of service under reverse charge basis.

(ii) Determine the time of supply in respect of service received by Ganesh.

Answer

(i) Relevant Provision of Section 13(3)

In case of supplies taxable on RCM basis, time of supply shall be the earlier of:–

(a) date of payment as entered in the books of recipient or debit date of payment in his bank account; or

(b) date immediately following 60 days from date of invoice or any other document

1^st Proviso - where it is not possible to determine the time of supply under clause (a) or (b), time of supply shall be the date of entry in the books of account of the recipient of supply:

(2) Facts

(i) Date of payment by recipient – 10-12-2018/ 17-12-2018

(ii) 61 days from invoice date = 20-11-2018 + 61 = 20-01-2019

(3) Conclusion

TOS shall be earlier of above = 10-12-2018

Question-7A [ICAI-F-Ch6-6]

Mint Industries Ltd., a registered supplier, imports business support services from Green Inc. of USA on 13^th Aug. The relevant invoice for $ 1,20,000 is raised by Green Inc on 18^th Aug. Mint Industries Ltd. makes the payment against the said invoice as follows:

Determine time of supply in each of the aforesaid cases.

Answer

In case of services supplied by any person located in a non-taxable territory to any person other than non-taxable online recipient, tax is payable under reverse charge by the person located in the taxable territory. [Notification No. 10/2017 IT (R) dated 28.06.2017]. Hence, in the given case, since the business support services are provided by Green Inc (located in non-taxable territory) to Mint Ltd. (person other than non-taxable online recipient and located in taxable territory), tax is payable under reverse charge by Mint Ltd.

The time of supply of services taxable under reverse charge is the earlier of
the following:

Date of payment, or

Date immediately following 60 days since issue of invoice (or any other document in lieu of invoice) by the supplier.

If it is not possible to determine the time of supply by using these parameters, then the time of supply will be the date of entry of the service in the books of account of the recipient of supply.  In view of the aforesaid provisions, the time of supply in each of the given cases will be as under:

Case-I Since Mint Ltd makes the payment within 60 days of the date of issue of invoice, the time of supply is the date of payment, i.e. 22^nd Sep.

Case-II As Mint Ltd. makes the payment after 60 days from the date of invoice, time of supply is the date immediately following the said period of 60 days, i.e. 61^st day which is 18^th Oct.

13.3.1 Time of supply in case of import of services between associated enterprises

Question-1 [ICAI-I-Ch5-Ill-8]

Determine the time of supply from the given information.

4^th May -  A German company issues email informing its associated company ABC Ltd. of the cost of technical services provided to it.

2^nd - Jul ABC Ltd transfers the amount to the account of the German company

Answer

(1) Statutory Provision

2^nd Proviso to Section 13(3) - In case of supply by associated enterprises, where the supplier of service is located outside India, time of supply shall be earlier of

date of entry in the books of account of the recipient of supply or

date of payment, whichever is earlier.

Advice

As there is no prior entry of the amount in the books of account of ABC Ltd., July 2 will be the time of supply, being the date of payment.

Question-2 [ICAI-F-Ch6-7]

Kothari Ltd., Mumbai, holds 51% of shares of Wilson Inc., a USA based company. Wilson Inc. provides business auxiliary services to Kothari Ltd. From the following details, determine the time of supply of service provided by Wilson Inc:

Answer

Since Kothari Ltd. holds 51% shares of Wilson Inc., Kothari Ltd. and Wilson Inc. are ‘associated enterprises’ as per section 92A of the Income-tax Act, 1961.

As per second proviso to section 13(3), in case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply is the earlier of the following two dates:

Thus, time of supply is 30th Sep.

13.7 Misc Questions

Quesiton-1 [ICSI-P-J22-2a-5]

Determine the time of supply (TOS) by giving reason in brief in each of the following cases in accordance with the provisions of CGST Act, 2017:

(i) Sunshine Pvt. Ltd. engaged in supply of services. It receives advance of Rs.2,35,000 from clients on 14th May, 2021 for the service to be rendered in the month of June, 2021.

(ii) Deep Ltd. provided management consultancy services to M/s. PBS & Co. on 14th Aug, 2021 and billed it for Rs.1,60,000 on 19th Sep, 2021. It received the payment for the same on 23rd Sep, 2021.

(iii) A provided the professional services to B Ltd. on 16th July, 2021 and date of raising invoice was 11th Aug, 202l, he received part payment 50% on 1st Aug, 2021 and Remaining 50% payment on 26th Aug, 2021.

(iv) Ankit Kumar purchased some goods covered under reverse charge mechanism. The goods received on 19th June, 202l, Date of invoice is l4th May, 2021 and the payment is made on 22nd June, 2021.

(v) TPS Ltd. is an Indian Company. It has received taxable supply of services from its associated enterprises Alfa Ltd. an US based company on 1st Jan, 2022. Alfa Ltd. raised an invoice of $ 80,000 on 10th February, 2022. TPS Ltd. debited its books of account on 25th February, 2022 and made the payment on 25th, March, 2022.

Answer

Statutory Provision

(a) Section-13(2)(a) - If invoice is issued within 30 days of supply of service as per section 31, TOS shall be earlier of

date of issue of invoice or

date of receipt of payment

(b) Section-13(2)(b) - If invoice is not issued within 30 days of supply of service as per section 31, TOS shall be earlier of

date of supply of service, or

date of receipt of payment, or

(i) Advice

Date of receipts of payment = 14th May, 2021

Date of service rendered = June, 2021.

In the given, date of issue of invoice is not given, hence as per section 13(2)(b), time of supply shall be earlier of date of receipts of payment or date of supply of services i.e. 14^th May 2021

(ii) Advice

Date of receipts of payment = 23^rd Sep, 2021

Date of service rendered = 14^th Aug, 2021

Due date of invoice = 14^th Sep, 2021

Date of invoice = 19^th Sep, 2021

In the given, invoice issued after due date, hence as per section 13(2)(b), time of supply shall be earlier of date of receipts of payment or date of supply of services i.e. 14^th Aug 2021

(iii) Advice

Date of receipts of payment = 1^st Aug and 26^th Aug, 2021

Date of service rendered = 16^th Jul, 2021

Due date of invoice = 15^th Aug, 2021

Date of invoice = 11^th Aug, 2021

In the given, invoice issued within due date, hence as per section 13(2)(a), time of supply shall be earlier of date of receipts of payment or date of invoice i.e. 1^st Aug and 11^th Aug

(iv)

(1) Section 12(3) - In case of supplies on which tax is payable on RCM basis, time of supply shall be the earliest of following dates

(a) date of the receipt of goods; or

(b) date of payment as entered in the books of account of the recipient or

debit date of payment in his bank account; or

(c) date immediately following 30 days from the date of invoice or any other document:

(2) Advice

Goods receipts date = 19^th Jun, 2021

Inv date = 14^th May, 2021

Date of payment = 22^nd Jun, 2021

Since the earliest date is 14^th May, hence time of supply is 01th May.

(v)

(1) 2^nd Proviso to Section 13(3) - in case of supply by associated enterprises, where the supplier of service is located outside India, time of supply shall be earlier of

date of entry in the books of account of the recipient of supply or

date of payment, whichever is earlier.

(2) Advice

In the given case, TPS Ltd. an Indian Company is an associated enterprises of Alfa Ltd. an US based company

Date of receipts of service = 01-01-2022

Date of entry in books = 25-02-2022

Date of payment = 25-03-2022

As per section 2^nd proviso to section 13(3), time of supply shall be 01-01-2022

Question-2 [ICAI-F-J21-3a-5] [Time of supply of goods and services]

SRK Limited, registered under GST, is engaged in sale of fabrics as well as doing job work of knitting of yarn for garment manufacturers. The company provides the following information in respect of order received for both sale of fabrics and job work

Determine the time of supply for the purpose of payment of tax under CGST Act, 2017, in respect of the above orders executed by the company.

Answer

(i) Section 12(2) read with Notification No. 66/2017-Central Tax dt. 15-11-2017 - Yime of supply of goods shall be the earlier of

The date of issue of invoice by the supplier or

the last date on which he is required u/s 31 to issue the invoice for such supply

(ii) Section-13(2)(a) - If invoice is issued within period prescribed u/s 31, TOS shall be earlier of

date of issue of invoice or

date of receipt of payment

(iii) Section-13(2)(b) - If invoice is not issued within period prescribed u/s 31, TOS shall be earlier of

date of supply of service, or

date of receipt of payment, or

Determination of time of supply

Question-3 [ICAI-F-Ch6-8]

KLM Ltd., a publishing and printing house registered in Maharashtra, is engaged in supply of books, letter cards, envelopes, guides and reference materials. The following information is provided by the company

In respect of printing of books, content was supplied by the author. For printing of envelopes, the design and logo were supplied by the buyer.

Determine the time of suppl(ies) for the purpose of payment of tax.