A. Place of Supply Provisions:
A.1. Introduction:
As per the provisions of the Goods and Services Tax Act, 2017, there shall be levied a tax called CGST/ IGST on all intra State/ Inter State supplies at the rate and value as prescribed. In other words, whether a supply is Inter State or intra state is the deciding factor for applicability of tax i.e CGST & SGST/UTGST or IGST. Hence it is pertinent to identify any supply made in the normal course of business as either Inter State or Intra State Supply.
A.2. Understanding Inter State and Intra State Supplies:
Intra State Supplies: Where the location of Supplier and Place of Supply is with in the same state, it will regarded as Intra State Supply and accordingly the provisions under CGST and SGST/UTGST laws will be applicable.
Inter State Supplies: On the Other hand, when the location of Supplier and the place of Supply are either in:
a) Two different States
b) Two different Union territories
c) a State and a Union territory
then such supply will be regarded as Inter State Supply and accordingly the provisions under IGST laws will be applicable.
A.3. Understanding Place of Supply Provisions under GST:
A.3.1 Place of Supply of Goods Provisions
Example: Mr. A registered in Delhi dealing in the trading of groundnuts and has agents in Haryan, Punjab & Rajasthan. Mr C, an agent of Mr. A in Punjab purchases goods from local vendor on behalf of A. Discuss the chargeability of supply made to Mr. C?
A.3.2 Place of Supply of Service Provisions
Eg: Directors of ABC Ltd, registered in Chandigarh have workspace in Chandigarh and travels on business trips to Bombay on regular basis. They avail accommodation services in Bombay and the invoice for accommodation services is billed in the name of ABC Ltd. What should be chargeability of such transaction?
A.4. :Legal References:
As per Section 2(71) of the CGST Act, 2017:
“location of the supplier of services” means,—
(a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business;
(b) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;
(c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provisions of the supply; and
(d) in absence of such places, the location of the usual place of residence of the supplier;
As per Section 2(103) of the CGST Act, 2017:
“State” includes a Union territory with Legislature; namely Delhi and Pondicherry
B. Time of Supply Provisions:
B.1. Introduction:
In layman language, time of supply means, the time when the liability pay tax arises. In other words, this is the time when the liability to pay arrives or the time when the activity of supply terminates. As per the provisions of the GST Law, 2017, time of supply has been classified into three categories i.e Time of Supply of Goods and Time of Supply Services and Time of Supply when the rate of tax changes.
B.2. Time of Supply of Goods:
Time of supply of goods provision can be classified for understanding in following categories.
B.3. Time of Supply of Services:
Time of Supply of Services can be classified for understanding into following categories:
Case Study: Refer Following table for cases in regards Time of Supply Provisions:
B.4. Time of Supply provisions when change in rate of tax:
B.5. Legal References:
As per Section 12 of the CGST Act:
(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
(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.
(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.
As per Section 13 of the CGST Act, 2017:
The liability to pay tax on services shall arise at the time of supply, as determined in accordance with the provisions of this section.
(2) The time of supply of services shall be the earliest of the following dates, namely:—
(a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment whichever is earlier; or
(b) the date of provision of service, if the invoice is not issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or
(c) the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not apply:
Provided that where the supplier of taxable service 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 relating to such excess amount.
(i) the 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;
(ii) “the date of receipt of payment” shall be the date on which the payment is entered in the books of account of the supplier 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 earlier of the following dates, namely:––
(a) 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 (b) the date immediately following sixty 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), the time of supply shall be the date of entry in the books of account of the recipient of supply:
Provided further that in case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier.
