Time, Place, and Value of Supply Under GST(Goods Or Services Tax)

The time, location, and value of a GST supply/transaction assist taxpayers in assessing the tax rate to be paid. While preparing a GST-compliant invoice, it is necessary for a taxpayer to know the relevant rate of CGST, SGST, and IGST. A taxpayer would be able to file his GST returns correctly using these invoices. Certain laws and provisions about the determination of the time, location, and value of supply have been laid down in the Goods and Services Tax (GST). In this post, let's understand those rules and provisions in-depth and Time, Place, and Value of Supply Under GST(Goods Or Services Tax)

 

The GST is a system of taxation focused on destination/consumption, where the supply of goods or services which are taxable under the GST regulations is subject to tax. The form of supply for products or services involves many main variables, such as whether the supplied goods or services are taxable, the GST rate paid, and much more. Here you can read about the time, location, and value of the supply of products or services in GST in a thorough description.

 

The Tax on Goods and Services (GST) is usually divided into three types: State Goods and Services Tax (SGST), Central Goods and Services Tax (CGST), and Integrated Goods and Services Tax (IGST). Although SGST and CGST are both taxes paid in the invoice for intra-state transactions, IGST, on the other hand, is charged by registered taxpayers in the invoice for inter-state transactions.

 

Supply time under GST

 

Supply time refers to the period in time when it is considered that goods and services are supplied or sold. The arrival time allows a seller to decide the due date for payment of his GST liability. At the time of sale, the seller has to pay CGST / SGST and IGST. For goods and services, the provisions to assess the time of delivery vary.

The duty to pay SGST / CGST takes effect only at the time of delivery of the goods. Here, when the following conditions are met, the earliest period for the delivery of goods is essentially taken into account:

 

• If required, when the goods are transported,

• When goods are not transferred, goods are made available to the buyer.

• At the time that the invoice was published,

• At the time of payment receipt

• When the receiver demonstrates in his / her account books the receipt of goods

In the event of continuous delivery of goods or services, the time of supply shall be as follows:

 

• At the successive account or payment declaration with regard to the contract

• The date on which the invoice was released or payment received, whichever is earlier

In the case of a reverse charge, the delivery time must be the earliest of the following:

 

• The date on which goods or services are obtained

• The date on which the payment takes place

• The date of the invoice receipt

• The date of the debited transaction(s) in the books of accounts

 

Place of delivery under GST

 

It is very necessary for a taxpayer to decide the relevant tax to be paid in the invoice to recognize the position of the supply of goods and services. This decides whether intrastate or interstate is a supply.

 

Where goods are dispatched on the basis of approval, the time of delivery shall be either at the time of approval or six months from the date of disposal, whichever is the earliest.

 

If, as mentioned above, it may not be possible to decide the time of delivery, then:

• It is important to file the date of the periodic return

• The date on which payment is made to SGST / CGST

 

In general, the location where the goods are supplied is one where the goods are to be shipped. The place where goods are distributed is also the place where the ownership of goods changes.

 

However, if there is no movement of goods, then at the time of distribution to the recipient, the place of supply is known to be the position of the goods.

 

For instance, the place of supply would be the store itself in the event of sales in a supermarket. In the case of items that are manufactured and mounted, the place of supply is the position where the installation is done.

 

For example, let's assume that the receiver in Rajasthan is supplied with machinery by a supplier located in Mumbai. Now, the equipment that is mounted in the recipient's factory is located in Lucknow. Thus, in this situation, Lucknow would be the place of supply for machinery.

 

Quality of the distribution of goods or services protected by GST

 

In general, the value of the GST supply of products or services means the money that a seller may wish to receive from the goods and services supplied to the recipient. Thus, what is called the value of the supply of goods or services is the amount received from the customer by the seller.

 

However, if a group of people is connected and a reasonable value may not be paid, or the transaction may take place as barter or an exchange scheme, the GST Act specifies that the 'transactional value' of the value for which GST is charged by the value for which it is charged.