Time of Supply under GST – Important Questions with Answers 2021. FAQs on Time of Supply, List of Important Queries related to Time of Supply with there solutions. Supply has been understood to hold the key to the incidence of GST, but it is the ‘time of supply’ that dictates the occasion when this incidence will come to rest. Taxable supply has been defined to mean a supply of goods and/or services that is chargeable to tax under this Act. It is interesting to note the use of the expression ‘chargeable to tax’ as opposed to ‘leviable to tax’. It has been held that ‘chargeable to tax’ encompasses not only the incidence of tax but also its assessment. Now check more details about Time of Supply under GST from below.
Time of Supply under GST
Q 1. What will be the time of supply where tax is liable to be paid under reverse charge mechanism?
Ans. In case of tax liable to be paid 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 thirty days from the date of issue of invoice 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||July 15, 2017||Time of supply shall be July 15, 2017|
|Date on which the payment is entered in the books of accounts of Mr. A||July 20, 2017|
|Date on which payment is debited in the bank account of Mr. A||July 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 July 30, 2017, the time of supply of goods will be July 30, 2017
Q 2 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 Rs. 1,000/- for a shirt dated December 01, 2017. Mr. A gifts such vouchers to Mr. B who redeems such vouchers with Amazon India on January 31, 2018. – Time of supply is the date of issue of vouchers viz., December 01, 2017.
Q 3. What are the conditions to avail the input tax credit on rent a cab, life Insurance, Health Insurance?
Tax paid w.r.t rent a cab services, life/ health insurance services will be eligible as input tax credit subject to the following conditions:
- If the Government notifies that such services are obligatory for an employer to provide to its employees under any law for the time being in force, or
- Such services are used by a registered person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply
Q 4. What is the difference between the availment of credit in case of Compulsory Registration and Voluntary Registration?
In case of compulsory registration, the input tax credit can be availed on the stocks held immediately preceding the date from which he becomes liable to pay tax (date of grant of registration may be later) and in case of voluntary registration, the input tax credit can be availed on the stocks held immediately preceding the date of grant of registration.
Q 5. Whether the principal is entitled to take input tax credit even when the principal has not received the goods and directly sent to job worker by the vendor?
Yes. Section 19(2) and Section 19 (4) (5) allows the principal to take input tax credit of goods not received by him, if the goods are sent directly to the job workers premises by the vendor.
Q 6. What is the rate of GST to be charged on advances received before the change in rate of tax if the supply is completed after the change is rate of tax?
If the invoices is also raised before the change in rate of tax then the old rate will be applicable even though the supply is complete after the change in rate of tax. Else, the new rate will be applicable.
Q 7. In case of Construction Contracts, builders remit taxes on receipt of payment or completion of slabs as provided in the contract. What will the impact due to change in the tax rates?
For payments received before the change in rate of tax, if invoices are also raised before the change in rate of tax, old rate will be applicable. Else the new rate will be applicable.
For slab completion before the change in rate of tax, if invoices are also raised before the change in rate of tax, old rate will be applicable. Else the new rate will be applicable.
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