Section 12

Time of Supply of Goods

(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.

(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

(Deleted by CGST Amendment Act 2018 applicable from 1st Feb 2019)

(This change has been made because time limit for issue of invoice for supply of goods has also been specified in section 31(4) and 31(7) as well)

(b) the date on which the supplier receives the payment with respect to the supply

(This point is not relevant as on date i.e. This point is NA wef 15th Nov 2017

As per Notification No 40/2017 central tax

as further amended by 66/2017 Central Tax Dated 15th Nov 2017)

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.

(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.

(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.

(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.

 (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.

Thanks

CA Rahul Gupta