Section 12 of CGST Act 2017-Time of Supply of Goods

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Section 12 of CGST Act 2017 Time of Supply of
Goods
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• What does section 12 say Section 12 talks about
  time of supply of goods that is when the
  liability to pay tax arises on goods. FAQS on
  Section 12 of CGST Act 2017 Time of Supply of
  Goods
• Q.1 What is Section 12?.
• Ans. Section 12 talks about time of supply of
  goods to determine the due date of tax liability
  which arises on supply of goods.
• Q.2 What shall be time of supply of goods?.
• Ans. Date of Issue of Invoice or Date of receipt
  of payments whichever is earlier.
• Q.3 What shall be Date of Receipt of Payments?.
• Ans. Date of Payment entered in Books of Accounts
  or Date of Payment Credited in Bank account
  whichever is earlier. Q.4 What shall be date in
  case of reverse charge basis?. Ans. Date of
  Receipt of Goods or Date of payment entered in
  Books of Accounts or Date of Payment Credited in
  Bank whichever is  earlier or Date immediately
  following thirty days from the date of issue of
  invoice or any other documents Whichever is
  earlier of above three points covered. Q.5 What
  shall be the Date in Case of Voucher?. Ans. Date
  of Issue of Voucher or Date of Redemption of
  Voucher whichever is earlier. Q.6 What shall be
  the Date where is not possible to
  determine?.

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• Ans. In case Periodical Return filed then Date of
  on which return is filed. In any other Case Date
  of Payment of Tax.
• Q.7 Definition of Goods?.
• Ans. Goods means every kind of movable property
  other than money and securities but includes
  actionable claims ,growing crops, grass and
  things attached to or forming part of land which
  are agreed to be severed before supply or under a
  contract of supply.
• Q.8 Definition of Voucher?.
• Ans. Voucher means an instrument where there is
  an obligation to accept it as consideration or
  part consideration for a supply of goods or
  services or both and where the goods or services
  or both to be supplied or the identities of their
  potential suppliers are either indicated on the
  instrument itself or in related documentation,
  including the terms and conditions of use of such
  instrument.
• Q.9 Definition of Supplier?.
• Ans. Supplier in relation to any goods or
  services or both, shall mean the person supplying
  the said goods or services or both and shall
  include an agent acting as such on behalf of such
  supplier in relation to the goods or services or
  both supplied.
• Q.10 Definition of Periodical Return ?.
• Ans. Valid Periodical return means return filed
  under sub section (1) of Section 39 on which self
  assessed tax has been paid in full.

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• Extract of Section 12 of CGST Act 2017 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
  32 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. (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

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• 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. Now we have examined the GST
  law reference which talks about the Time of
  Supply of Goods. Let us understand the above law
  in some Questions and Answers format. Disclaimer
  The above said article is author view point only
  please refer respective sections ,rules framed
  under gst law.
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