CA Intermediate Exam > CA Intermediate Notes > Taxation for CA Intermediate > ICAI Notes: Time of Supply
ICAI Notes: Time of Supply | Taxation for CA Intermediate PDF Download
| Download, print and study this document offline |
Please wait while the PDF view is loading
Page 1
CHAPTER
6
LEARNING OUTCOMES
a
a
CHAPTER
6
TIME OF SUPPLY
The section numbers referred to in the Chapter pertain to the CGST Act, 2017, unless
otherwise specified. Examples/illustrations/Questions and Answers given in the
Chapter are based on the position of GST law existing as on 30.04.2023.
After studying this Chapter, you will be able to identify the
point in time when the liability to pay GST arises -
? on supply of goods or services where GST is payable under
forward charge
? on supply of goods or services where GST is payable under
reverse charge
? on supply of vouchers exchangeable for goods and services
? on supply of goods and services in residual cases
? in case of enhancement of value of supply on account of
interest, late fee/penalty paid for delay in payment of
consideration
? apply the concepts relating to time of supply of goods and/or
services in problem solving
© The Institute of Chartered Accountants of India
Page 2
CHAPTER
6
LEARNING OUTCOMES
a
a
CHAPTER
6
TIME OF SUPPLY
The section numbers referred to in the Chapter pertain to the CGST Act, 2017, unless
otherwise specified. Examples/illustrations/Questions and Answers given in the
Chapter are based on the position of GST law existing as on 30.04.2023.
After studying this Chapter, you will be able to identify the
point in time when the liability to pay GST arises -
? on supply of goods or services where GST is payable under
forward charge
? on supply of goods or services where GST is payable under
reverse charge
? on supply of vouchers exchangeable for goods and services
? on supply of goods and services in residual cases
? in case of enhancement of value of supply on account of
interest, late fee/penalty paid for delay in payment of
consideration
? apply the concepts relating to time of supply of goods and/or
services in problem solving
© The Institute of Chartered Accountants of India
a
6.2
GOODS AND SERVICES TAX
1. INTRODUCTION
GST is payable on supply of goods or services. A
supply consists of elements that can be separated in
time, like purchase order / agreement, dispatch (of
goods), delivery (of goods) or provision or
performance of service, entry in the records,
payment, and entry of the payment in the records or
deposit in the bank.
So, the question that arises is - at what point of time
in the aforesaid transaction, the GST becomes payable? Does it become payable when
an agreement to supply goods or services is made, or when the goods are shipped or
the services are provided, or when the invoice is issued or when payment is made?
Time of Supply
Time of supply of goods
Time of supply under forward
charge
Time of supply under reverse
charge
Time of supply of vouchers
exchangeable for goods
Time of supply in residual cases
Time of supply of services
Time of supply under forward
charge
Time of supply under reverse
charge
Time of supply of vouchers
exchangeable for services
Time of supply in residual cases
CHAPTER OVERVIEW
© The Institute of Chartered Accountants of India
Page 3
CHAPTER
6
LEARNING OUTCOMES
a
a
CHAPTER
6
TIME OF SUPPLY
The section numbers referred to in the Chapter pertain to the CGST Act, 2017, unless
otherwise specified. Examples/illustrations/Questions and Answers given in the
Chapter are based on the position of GST law existing as on 30.04.2023.
After studying this Chapter, you will be able to identify the
point in time when the liability to pay GST arises -
? on supply of goods or services where GST is payable under
forward charge
? on supply of goods or services where GST is payable under
reverse charge
? on supply of vouchers exchangeable for goods and services
? on supply of goods and services in residual cases
? in case of enhancement of value of supply on account of
interest, late fee/penalty paid for delay in payment of
consideration
? apply the concepts relating to time of supply of goods and/or
services in problem solving
© The Institute of Chartered Accountants of India
a
6.2
GOODS AND SERVICES TAX
1. INTRODUCTION
GST is payable on supply of goods or services. A
supply consists of elements that can be separated in
time, like purchase order / agreement, dispatch (of
goods), delivery (of goods) or provision or
performance of service, entry in the records,
payment, and entry of the payment in the records or
deposit in the bank.
So, the question that arises is - at what point of time
in the aforesaid transaction, the GST becomes payable? Does it become payable when
an agreement to supply goods or services is made, or when the goods are shipped or
the services are provided, or when the invoice is issued or when payment is made?
Time of Supply
Time of supply of goods
Time of supply under forward
charge
Time of supply under reverse
charge
Time of supply of vouchers
exchangeable for goods
Time of supply in residual cases
Time of supply of services
Time of supply under forward
charge
Time of supply under reverse
charge
Time of supply of vouchers
exchangeable for services
Time of supply in residual cases
CHAPTER OVERVIEW
© The Institute of Chartered Accountants of India
6.3
TIME OF SUPPLY
a a
6 3
6.3
What if the goods are shipped over a period of time? What if the service is provided
over a period of time? Provisions relating to ‘time of supply’ provide answers to all
such and other questions that arise with respect to the time when the liability to pay
CGST and SGST/UTGST (intra-State supply) or IGST (inter-State supply) arises. In other
words, time of supply indicates the point in time when the liability to pay tax arises. It
is important to note here that though the liability to pay tax arises at the time of supply,
the same can be paid to the Government by the due dates prescribed with reference
to the said ‘time of supply’. For instance, if time of supply of a given supply is 25
th
May, the tax leviable thereon would be payable latest by 20
th
June, which is the due
date prescribed in the CGST Act for suppliers filing GST return on monthly basis.
1
The CGST Act provides separate provisions for time of supply for goods and services
vide sections 12 and 13 respectively. Section 14 provides for the method of
determining the time of supply in case there is a change in the rate of tax on supply of
goods or services.
2
Sections 12 and 13 employ the provisions of section 31 relating to
issue of tax invoice as a reference point. Therefore, it will be useful to read this Chapter
in conjunction with the provisions relating to tax invoice discussed in detail in Chapter
10: Tax Invoice, Credit and Debit Notes in Module 2 of this Study Material.
Events like issue of invoices, receipt of payment, provision of service, receipt of services
as recorded in books of account need to be analysed to determine the time of supply
when the tax on supply is payable under forward charge. When the tax on supply is
payable under reverse charge, events like date of receipt of goods or services, date of
making payment, date of issue of invoice etc. need to be analysed to determine the
time of supply. The provisions relating to time of supply essentially fix the tax
collection event to the earliest possible time.
In the subsequent pages of this Chapter, sections 12 and 13 are extracted, followed by
their analysis, to understand how to determine the time of supply of goods and
services respectively. When studying the statutory provisions, the definitions
(extracted first) must also be referred to simultaneously, so as to understand the
precise meaning of the terms used.
1
Provisions relating to due date for payment of tax have been discussed in Chapter 13: Payment
of Tax in Module 2 of this Study Material.
2
Provisions of section 14 relating to determination of time of supply in case of change in rate of
tax in respect of supply of goods or services will be discussed at the Final level.
© The Institute of Chartered Accountants of India
Page 4
CHAPTER
6
LEARNING OUTCOMES
a
a
CHAPTER
6
TIME OF SUPPLY
The section numbers referred to in the Chapter pertain to the CGST Act, 2017, unless
otherwise specified. Examples/illustrations/Questions and Answers given in the
Chapter are based on the position of GST law existing as on 30.04.2023.
After studying this Chapter, you will be able to identify the
point in time when the liability to pay GST arises -
? on supply of goods or services where GST is payable under
forward charge
? on supply of goods or services where GST is payable under
reverse charge
? on supply of vouchers exchangeable for goods and services
? on supply of goods and services in residual cases
? in case of enhancement of value of supply on account of
interest, late fee/penalty paid for delay in payment of
consideration
? apply the concepts relating to time of supply of goods and/or
services in problem solving
© The Institute of Chartered Accountants of India
a
6.2
GOODS AND SERVICES TAX
1. INTRODUCTION
GST is payable on supply of goods or services. A
supply consists of elements that can be separated in
time, like purchase order / agreement, dispatch (of
goods), delivery (of goods) or provision or
performance of service, entry in the records,
payment, and entry of the payment in the records or
deposit in the bank.
So, the question that arises is - at what point of time
in the aforesaid transaction, the GST becomes payable? Does it become payable when
an agreement to supply goods or services is made, or when the goods are shipped or
the services are provided, or when the invoice is issued or when payment is made?
Time of Supply
Time of supply of goods
Time of supply under forward
charge
Time of supply under reverse
charge
Time of supply of vouchers
exchangeable for goods
Time of supply in residual cases
Time of supply of services
Time of supply under forward
charge
Time of supply under reverse
charge
Time of supply of vouchers
exchangeable for services
Time of supply in residual cases
CHAPTER OVERVIEW
© The Institute of Chartered Accountants of India
6.3
TIME OF SUPPLY
a a
6 3
6.3
What if the goods are shipped over a period of time? What if the service is provided
over a period of time? Provisions relating to ‘time of supply’ provide answers to all
such and other questions that arise with respect to the time when the liability to pay
CGST and SGST/UTGST (intra-State supply) or IGST (inter-State supply) arises. In other
words, time of supply indicates the point in time when the liability to pay tax arises. It
is important to note here that though the liability to pay tax arises at the time of supply,
the same can be paid to the Government by the due dates prescribed with reference
to the said ‘time of supply’. For instance, if time of supply of a given supply is 25
th
May, the tax leviable thereon would be payable latest by 20
th
June, which is the due
date prescribed in the CGST Act for suppliers filing GST return on monthly basis.
1
The CGST Act provides separate provisions for time of supply for goods and services
vide sections 12 and 13 respectively. Section 14 provides for the method of
determining the time of supply in case there is a change in the rate of tax on supply of
goods or services.
2
Sections 12 and 13 employ the provisions of section 31 relating to
issue of tax invoice as a reference point. Therefore, it will be useful to read this Chapter
in conjunction with the provisions relating to tax invoice discussed in detail in Chapter
10: Tax Invoice, Credit and Debit Notes in Module 2 of this Study Material.
Events like issue of invoices, receipt of payment, provision of service, receipt of services
as recorded in books of account need to be analysed to determine the time of supply
when the tax on supply is payable under forward charge. When the tax on supply is
payable under reverse charge, events like date of receipt of goods or services, date of
making payment, date of issue of invoice etc. need to be analysed to determine the
time of supply. The provisions relating to time of supply essentially fix the tax
collection event to the earliest possible time.
In the subsequent pages of this Chapter, sections 12 and 13 are extracted, followed by
their analysis, to understand how to determine the time of supply of goods and
services respectively. When studying the statutory provisions, the definitions
(extracted first) must also be referred to simultaneously, so as to understand the
precise meaning of the terms used.
1
Provisions relating to due date for payment of tax have been discussed in Chapter 13: Payment
of Tax in Module 2 of this Study Material.
2
Provisions of section 14 relating to determination of time of supply in case of change in rate of
tax in respect of supply of goods or services will be discussed at the Final level.
© The Institute of Chartered Accountants of India
a
6.4
GOODS AND SERVICES TAX
2. RELEVANT DEFINITIONS
? Associated enterprises shall have the same meaning as assigned to it in
section 92A of the Income-tax Act, 1961 [Section 2(12)].
Broadly, an associated enterprise in relation to another enterprise, means
an enterprise which participates, directly or indirectly, or through one or
more intermediaries, in the management or control or capital of the other
enterprise.
? Document includes written or printed record of any sort and electronic
record as defined in clause (t) of section 2 of the Information Technology
Act, 2000 [Section 2(41)].
? Invoice or tax invoice means the tax invoice referred to in section 31
[Section 2(66)].
? Goods means every kind of movable property other than money and
securities but includes actionable claim, growing crops, grass and things
attached to or forming part of the land which are agreed to be severed
before supply or under a contract of supply [Section 2(52)].
Provisions of time of supply under CGST Act have also been made
applicable to IGST Act vide section 20 of the IGST Act.
GOODS
All kind of movable property
Money & Securities
Actionable claim, Growing Crops, Grass & Things
forming part of land agreed to be severed before
supply or under a contract of supply
MEANS
EXCLUDES
INCLUDES
© The Institute of Chartered Accountants of India
Page 5
CHAPTER
6
LEARNING OUTCOMES
a
a
CHAPTER
6
TIME OF SUPPLY
The section numbers referred to in the Chapter pertain to the CGST Act, 2017, unless
otherwise specified. Examples/illustrations/Questions and Answers given in the
Chapter are based on the position of GST law existing as on 30.04.2023.
After studying this Chapter, you will be able to identify the
point in time when the liability to pay GST arises -
? on supply of goods or services where GST is payable under
forward charge
? on supply of goods or services where GST is payable under
reverse charge
? on supply of vouchers exchangeable for goods and services
? on supply of goods and services in residual cases
? in case of enhancement of value of supply on account of
interest, late fee/penalty paid for delay in payment of
consideration
? apply the concepts relating to time of supply of goods and/or
services in problem solving
© The Institute of Chartered Accountants of India
a
6.2
GOODS AND SERVICES TAX
1. INTRODUCTION
GST is payable on supply of goods or services. A
supply consists of elements that can be separated in
time, like purchase order / agreement, dispatch (of
goods), delivery (of goods) or provision or
performance of service, entry in the records,
payment, and entry of the payment in the records or
deposit in the bank.
So, the question that arises is - at what point of time
in the aforesaid transaction, the GST becomes payable? Does it become payable when
an agreement to supply goods or services is made, or when the goods are shipped or
the services are provided, or when the invoice is issued or when payment is made?
Time of Supply
Time of supply of goods
Time of supply under forward
charge
Time of supply under reverse
charge
Time of supply of vouchers
exchangeable for goods
Time of supply in residual cases
Time of supply of services
Time of supply under forward
charge
Time of supply under reverse
charge
Time of supply of vouchers
exchangeable for services
Time of supply in residual cases
CHAPTER OVERVIEW
© The Institute of Chartered Accountants of India
6.3
TIME OF SUPPLY
a a
6 3
6.3
What if the goods are shipped over a period of time? What if the service is provided
over a period of time? Provisions relating to ‘time of supply’ provide answers to all
such and other questions that arise with respect to the time when the liability to pay
CGST and SGST/UTGST (intra-State supply) or IGST (inter-State supply) arises. In other
words, time of supply indicates the point in time when the liability to pay tax arises. It
is important to note here that though the liability to pay tax arises at the time of supply,
the same can be paid to the Government by the due dates prescribed with reference
to the said ‘time of supply’. For instance, if time of supply of a given supply is 25
th
May, the tax leviable thereon would be payable latest by 20
th
June, which is the due
date prescribed in the CGST Act for suppliers filing GST return on monthly basis.
1
The CGST Act provides separate provisions for time of supply for goods and services
vide sections 12 and 13 respectively. Section 14 provides for the method of
determining the time of supply in case there is a change in the rate of tax on supply of
goods or services.
2
Sections 12 and 13 employ the provisions of section 31 relating to
issue of tax invoice as a reference point. Therefore, it will be useful to read this Chapter
in conjunction with the provisions relating to tax invoice discussed in detail in Chapter
10: Tax Invoice, Credit and Debit Notes in Module 2 of this Study Material.
Events like issue of invoices, receipt of payment, provision of service, receipt of services
as recorded in books of account need to be analysed to determine the time of supply
when the tax on supply is payable under forward charge. When the tax on supply is
payable under reverse charge, events like date of receipt of goods or services, date of
making payment, date of issue of invoice etc. need to be analysed to determine the
time of supply. The provisions relating to time of supply essentially fix the tax
collection event to the earliest possible time.
In the subsequent pages of this Chapter, sections 12 and 13 are extracted, followed by
their analysis, to understand how to determine the time of supply of goods and
services respectively. When studying the statutory provisions, the definitions
(extracted first) must also be referred to simultaneously, so as to understand the
precise meaning of the terms used.
1
Provisions relating to due date for payment of tax have been discussed in Chapter 13: Payment
of Tax in Module 2 of this Study Material.
2
Provisions of section 14 relating to determination of time of supply in case of change in rate of
tax in respect of supply of goods or services will be discussed at the Final level.
© The Institute of Chartered Accountants of India
a
6.4
GOODS AND SERVICES TAX
2. RELEVANT DEFINITIONS
? Associated enterprises shall have the same meaning as assigned to it in
section 92A of the Income-tax Act, 1961 [Section 2(12)].
Broadly, an associated enterprise in relation to another enterprise, means
an enterprise which participates, directly or indirectly, or through one or
more intermediaries, in the management or control or capital of the other
enterprise.
? Document includes written or printed record of any sort and electronic
record as defined in clause (t) of section 2 of the Information Technology
Act, 2000 [Section 2(41)].
? Invoice or tax invoice means the tax invoice referred to in section 31
[Section 2(66)].
? Goods means every kind of movable property other than money and
securities but includes actionable claim, growing crops, grass and things
attached to or forming part of the land which are agreed to be severed
before supply or under a contract of supply [Section 2(52)].
Provisions of time of supply under CGST Act have also been made
applicable to IGST Act vide section 20 of the IGST Act.
GOODS
All kind of movable property
Money & Securities
Actionable claim, Growing Crops, Grass & Things
forming part of land agreed to be severed before
supply or under a contract of supply
MEANS
EXCLUDES
INCLUDES
© The Institute of Chartered Accountants of India
6.5
TIME OF SUPPLY
a a
6 5
6.5
? Prescribed means prescribed by rules made under this Act on the
recommendations of the Council [Section 2(87)].
? Reverse charge means the liability to pay tax by the recipient of supply of
goods or services or both instead of the supplier of such goods or services
or both under sub-section (3) or sub-section (4) of section 9, or under sub-
section (3) or sub- section (4) of section 5 of the Integrated Goods and
Services Tax Act [Section 2(98)].
? Services means anything other than goods, money and securities but
includes activities relating to the use of money or its conversion by cash or
by any other mode, from one form, currency or denomination, to another
form, currency or denomination for which a separate consideration is
charged.
Explanation.––For the removal of doubts, it is hereby clarified that the
expression “services” includes facilitating or arranging transactions in
securities [Section 2(102)].
? Recipient of supply of goods or services or both, means—
Goods Money Securities
INCLUDING
Activities
relating to use
of money or its
conversion for a
consideration
SERVICES
Anything
EXCLUDING
MEANS
Activities
facilitating or
arranging
transactions in
securities
© The Institute of Chartered Accountants of India
Read More
|
42 videos|98 docs|12 tests
|
Related Exams
About this Document
|
4.60/5 Rating |
|
Dec 19, 2024 Last updated |
Document Description: ICAI Notes: Time of Supply for CA Intermediate 2024 is part of Taxation for CA Intermediate preparation.
The notes and questions for ICAI Notes: Time of Supply have been prepared according to the CA Intermediate exam syllabus. Information about ICAI Notes: Time of Supply covers topics
like and ICAI Notes: Time of Supply Example, for CA Intermediate 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for ICAI Notes: Time of Supply.
Introduction of ICAI Notes: Time of Supply in English is available as part of our Taxation for CA Intermediate
for CA Intermediate & ICAI Notes: Time of Supply in Hindi for Taxation for CA Intermediate course.
Download more important topics related with notes, lectures and mock test series for CA Intermediate
Exam by signing up for free. CA Intermediate: ICAI Notes: Time of Supply | Taxation for CA Intermediate
Description
Full syllabus notes, lecture & questions for ICAI Notes: Time of Supply | Taxation for CA Intermediate - CA Intermediate | Plus excerises question with solution to help you revise complete syllabus for Taxation for CA Intermediate | Best notes, free PDF download
Information about ICAI Notes: Time of Supply
In this doc you can find the meaning of ICAI Notes: Time of Supply defined & explained in the simplest way possible. Besides explaining types of
ICAI Notes: Time of Supply theory, EduRev gives you an ample number of questions to practice ICAI Notes: Time of Supply tests, examples and also practice CA Intermediate
tests
|
Explore Courses for CA Intermediate exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Sample Paper
,Previous Year Questions with Solutions
,study material
,ICAI Notes: Time of Supply | Taxation for CA Intermediate
,Extra Questions
,mock tests for examination
,Objective type Questions
,ppt
,Free
,past year papers
,video lectures
,ICAI Notes: Time of Supply | Taxation for CA Intermediate
,MCQs
,Summary
,shortcuts and tricks
,ICAI Notes: Time of Supply | Taxation for CA Intermediate
,Exam
,Important questions
,practice quizzes
,Semester Notes
,Viva Questions
;
Additional Information about ICAI Notes: Time of Supply for CA Intermediate Preparation
ICAI Notes: Time of Supply Free PDF Download
The ICAI Notes: Time of Supply is an invaluable resource that delves deep into the core of the CA Intermediate exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the ICAI Notes: Time of Supply now and kickstart your journey towards success in the CA Intermediate exam.
Importance of ICAI Notes: Time of Supply
The importance of ICAI Notes: Time of Supply cannot be overstated, especially for CA Intermediate aspirants.
This document holds the key to success in the CA Intermediate exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
ICAI Notes: Time of Supply
ICAI Notes: Time of Supply Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to ICAI Notes: Time of Supply.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, ICAI Notes: Time of Supply Notes on EduRev are your ultimate resource for success.
ICAI Notes: Time of Supply CA Intermediate Questions
The "ICAI Notes: Time of Supply CA Intermediate Questions" guide is a valuable resource for all aspiring students preparing for the
CA Intermediate exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study ICAI Notes: Time of Supply on the App
Students of CA Intermediate can study ICAI Notes: Time of Supply alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the ICAI Notes: Time of Supply,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of ICAI Notes: Time of Supply is prepared as per the latest CA Intermediate syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup