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What is Time of Supply as per Section 12 of CGST Act?
Time of Supply is
Earlier of
Date of Invoice
Last Date of Issue of Invoice
Date of Payment this is removed from 15 Nov 2017 Onward
Example 1
Suppose Goods Sold to Customer on 10 May but received by Customer on 11 May.
The Bill issued to Customer on 15 May. Amount is received from customer on 20 May by cheque which was cleared on 22 May
Calculate Time of Supply
| Particular | Date |
| Date of Invoice | 15-May |
| Last Date of Issue of Invoice | 10-May |
| Date of Payment | |
| Time of Supply(Earlier of 3) | 10-May |
Example 2 :- Amount Received in Advance
Suppose Company entered into a Contract to Sell goods for Rs 100000+ 3% CGST+2% SGST
It received full payment in advance on 20 July by NEFT
Goods taken by Customer from shop on 18 September and Invoice issued Same Date
Calculate Time of Supply
| Particular | Date |
| Date of Invoice | 18-Sep |
| Last Date of Issue of Invoice | 18-Sep |
| Date of Payment | |
| Time of Supply(Earlier of 3) | 20-July |
Example 3 :- Partial Amount Received in Advance
Suppose Company entered into a Contract to Sell goods for Rs 100000+ 3% CGST+2% SGST
It received 20% payment in advance on 20 July
Goods taken by Customer from shop on 18 September and Invoice issued Same Date
Balance Payment made on 11 November
| Particular |
20% |
80% |
| Date of Invoice | 18-Sep | 18-Sep |
| Last Date of Issue of Invoice | 18-Sep | 18-Sep |
| Date of Payment | ||
| Time of Supply(Earlier of 3) | 18-Sep | 18-Sep |
