Amended and updated notes on section 12 of CGST Act, 2017. Detail discussion on provisions and rules related to time of Supply of Goods.
Chapter IV (Sections 12–15) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to time and value of supply. Section 12 of CGST 2017 provides for time of Supply of Goods.
Recently, we have discussed in detail section 11 (Power to grant Exemption) of CGST Act 2017. Today, we learn the provisions of section 12 of Central GST Act 2017.
Section 12 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 12 is 1-7-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | IV |
| Chapter Name | Time and value of supply |
| Section No. | 12 |
| Section Name | Time of Supply of Goods |
| Updated 2024 Edition | GST Law Book PDF |
Relevant Rules and Forms for GST Section 12:
- Rule 34: Rate of exchange of currency, other than Indian rupees, for determination of value
Section 12 of Central GST – Time of Supply of Goods1
Section 12 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.
Section 12(1) of CGST Act
Section 12(1): The liability to pay tax on goods shall arise at the time of supply, as determined in accordance with the provisions of this section.
Section 12(2) of CGST Act
Section 12(2): The time of supply of goods shall be the earlier of the following dates, namely: —
- (a) the date of issue of invoice by the supplier or the last date on which he is required, under section 31, to issue the invoice with respect to the supply; or
- (b) the date on which the supplier receives the payment with respect to the supply:
Provided that where the supplier of taxable goods receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time 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.
Explanation 1: For the purposes of clauses (a) and (b), “supply” shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment.
Explanation 2: For the purposes of clause (b), “the date on which the supplier receives the payment” shall be the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account, whichever is earlier.
Section 12(3) of CGST Act
Section 12(3): 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) the date of the receipt of goods; or
- (b) the date of payment 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) the date immediately following thirty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier:
Provided that where it is not possible to determine the time of supply under clause (a) or clause (b) or clause (c), the time of supply shall be the date of entry in the books of account of the recipient of supply.
Section 12(4) of CGST Act
Section 12(4): In case of supply of vouchers by a supplier, the time of supply shall be—
- (a) the date of issue of voucher, if the supply is identifiable at that point; or
- (b) the date of redemption of voucher, in all other cases.
Section 12(5) of CGST Act
Section 12(5): Where it is not possible to determine the time of supply under the provisions of
sub-section (2) or sub-section (3) or sub-section (4), the time of supply shall––
- (a) in a case where a periodical return has to be filed, be the date on which such return is to be filed; or
- (b) in any other case, be the date on which the tax is paid.
Section 12(6) of CGST Act
Section 12(6): The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.
- Section 12 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎