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Time of supply
Indirect Taxation
Generally we learn in time of supply (goods)like invoice to be issued at the time of removal or within 30days of removal but in practical life sometimes issued are issued late(after 2months) then he pays tax which it relates to that tax period then what's the importance of time of supply??
Answers (14)
one can defer tax by issuing invoice late. so,time of supply shall be date of invoice which means -actual date of invoice -last day on which invoice is ought to be issued u/s 31[on or before date of removal in case of movement of goods] whichever is earlier so if goods are issued before the invoice then the date of issue of goods will be treated as time of supply
For goods, tax invoice should be issued any time before or at its delivery as per Sec 31. Time of supply enables the registered person to understand when the liability of tax payment has arisen ,basically the point of taxation. Time of supply for goods is earlier of - date of actual invoice issue or last date on which invoice is to be issued or date of receipt of payment. The relevance of time of supply provision is that dealer will not unnecessarily take advantage of rate of tax using the pretext that invoice is not issued, and also avoid delayed return of GST
Vamsi Krishna
one can defer tax by issuing invoice late. so,time of supply shall be date of invoice which means -actual date of invoice -last day on which invoice is ought to be issued u/s 31[on or before date of removal in case of movement of goods] whichever is earlier so if goods are issued before the invoice then the date of issue of goods will be treated as time of supply
For example..on 1/1/21 the goods are sent to customer..(date of removal) but I issed tax invoice after 2 months..as per section time of supplywill be 1)..date of issue of invoice or last date u/s 31.. In this case Time of supply will be 31/1/21..and needs to pay in Jan return... But supplier will issue after 2months..say 1st May .and pays tax in may return..then what's the purpose of time of suppl
Thread Starter
vasabattula abhinavFor example..on 1/1/21 the goods are sent to customer..(date of removal) but I issed tax invoice after 2 months..as per section time of supplywill be 1)..date of issue of invoice or last date u/s 31.. In this case Time of supply will be 31/1/21..and needs to pay in Jan return... But supplier will issue after 2months..say 1st May .and pays tax in may return..then what's the purpose of time of suppl
If goods are sent to customer on 1/1/21 then invoice should have been issued on 1/1/21. Then the time of supply is 1/1/21 and tax should have been paid by 20/2/21. Thats the rule as per law.
Shiva Teja Faculty
If goods are sent to customer on 1/1/21 then invoice should have been issued on 1/1/21. Then the time of supply is 1/1/21 and tax should have been paid by 20/2/21. Thats the rule as per law.
Yes sir, but we if don't issue tax invoice at removal and we issue sometimes as per customer convenience and pay tax when the invoice date falls..what happens if we do like this..?
Thread Starter
vasabattula abhinavYes sir, but we if don't issue tax invoice at removal and we issue sometimes as per customer convenience and pay tax when the invoice date falls..what happens if we do like this..?
Thats not as per law. It would attract penal provisions when identified by the tax officer {Interest and Penalty}
Shiva Teja Faculty
Most Welcome.
Sir In practical cases..where if we go out for business trip..for example..I am andhra pradesh registered person..went to telengana business trip..and in some cases they charge cgst&sgst(Telangana)..and I'm eligible for taking itc..but by taking input tax credit I'm reducing the liability of sgst(andhra pradesh)...paying tax to one govt and claiming input in one govt is it fair to do like this sir?
Thread Starter
vasabattula abhinavSir In practical cases..where if we go out for business trip..for example..I am andhra pradesh registered person..went to telengana business trip..and in some cases they charge cgst&sgst(Telangana)..and I'm eligible for taking itc..but by taking input tax credit I'm reducing the liability of sgst(andhra pradesh)...paying tax to one govt and claiming input in one govt is it fair to do like this sir?
If you are registered in AP and you have paid CGST and SGST in Telangana then you cannot claim ITC.
Shiva Teja Faculty
If you are registered in AP and you have paid CGST and SGST in Telangana then you cannot claim ITC.
Sir but in practical scenarios we go for business trips and they charge cgst sgst and we should nt take itc of it sir?
Thread Starter
vasabattula abhinavSir but in practical scenarios we go for business trips and they charge cgst sgst and we should nt take itc of it sir?
No we should not take. If it is IGST credit then we can take.
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