Chapter IV (Sections 12-15) of the Central Goods and Services Tax (CGST) Act, 2017 deals with provisions related to Time and Value of Supply. Section 12 of Central Goods and Services Tax Act, 2017 (12 of 2017) provides for Time of supply of goods under CGST Act 2017.
Recently, we have discussed in detail section 11 (i.e. Power to grant exemption from tax) of CGST Act 2017. Today, we learn the provisions of section 12 of the CGST Act 2017. Complete Details of CGST Section 12 – Time of supply of goods. You may CLICK HERE to download list of all sections of CGST Act 2017 in PDF format.
Did you know? CGST Act 2017 have been enacted by Parliament in the Sixty-eighth Year of the Republic of India to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto.
Notes on Section 12 of CGST Act 2017
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): 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 sub-section (1) of 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): 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): 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): 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): 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.