GST : Time and Place of Supply

GST- Time & Place of Supply of Goods & Services
Paper Presenter : Dnyanesh Patade
Articleship at : Suhas Paranjpe & Co. (Suhas Paranjpe)
Presented at CA Students National Conference dt. 22nd and 23rd December 2017
1Friday, 22 December 2017

What is Time and Place of Supply?
Friday, 22 December 2017 2
Supply Oct 2017
Invoice Date Nov 2017
Payment Date Dec 2017
When the liability arises ?
Which date is to be Considered ?
↓
Time of Supply
Since GST is consumption based Tax,
Which tax is to be charged ?
When it will be called as Export ?
↓
Place of Supply
Mr. B
Supplier
Mr. C
GujaratMaharashtra
Gives Order
of goods
Which Tax
is required
to be
Charged?
CGST +
SGST
Or
IGST ?
Mr. A

All Relevant Provisions and Section Summary :
Summary
• Defined under CGST Act :
• Section 12 in Case of Goods
• Section 13 in Case of Services
• Section 14 in Case of Change on Rate
• Section 31 Tax Invoice ( Relevant )
• CGST Rules : Tax Invoice Rules ( Relevant )
Time of Supply
• Defined Under IGST Act
• Section 10 : Supply of Goods other than Imports and Exports
• Section 11 : Supply of Goods : Imports and Exports
• Section 12 : Supply of Service where Supplier and Recipient of Service is in India
• Section 13 : Supply of Service either Supplier or Recipient of Service is in
Outside India
Place of Supply

Time of Supply - GoodsSupplyofgoods
Issue of Invoice 15.12.2017
Date of Removal 30.11.2017
Receipt of Consideration 05.12.2017
The Default rule to be followed for the Time of Supply of Goods is as follows :
In Ordinary course of Business
Earlier of :
Date of Issue of Invoice by
Supplier
Date of Receipt of
Consideration*
Last date before which Invoice is
required to be issued
Last Date for issue of Invoice is
Earlier of :
1. Date of Removal of Goods
2. Date of Delivery of Goods,
Making Available to Receipt.
* The Section 12(2)(b)has been withdrawn w.e.f. 15-11-2017
? Time of Supply

• Section 12(3) talks about the Time of Supply in case of Reverse Charge, i.e. Section 9(3) and Section 9(4)
For Reverse Charge Rule is :
Earlier of :
Date of receipt of goods.
31st day from date of
issue of invoice/ other
document by supplier.
Date on which payment is made.
Earlier of
1. Date of entry in books of
accounts.
2. Date of debit in bank account
Time of Supply - Goods
What if I have
purchased from
Unregistered
Person,
And I have to
pay Tax??
Supplyofgoods
Receipt of Goods 01.12.2017
Payment of Consideration 05.12.2017
Suppliers Invoice 30.11.2017
Time of Supply
Last Date
31.12.2018

The Default rule to be followed for the Time of Supply of Service is as follows :
Time of Supply of Services In Ordinary course of Business
Earlier of :
Date of Issue of Invoice by
Supplier.
Date of Provision of Service if invoice is
not issued within Time Specified.
Earlier of :
1.Date of Entry in Books of
Accounts.
2.Date of Credit in Bank
Account
S.31(2) and CGST Rule 47 :
Invoice is to be Issued within 30 days
from Supply of Service.
Time of Supply - Services
Date of Receipt of
Consideration
SupplyofService
Issue of Invoice 15.12.2017
Date of Provision of Service 30.11.2017
Receipt of Consideration 05.12.2017
Last Date is
30.12.2017
Time of Supply

• In case of Reverse Charge, the Time of Supply of Services in case tax is required to be
paid under Reverse Charge Mechanism:
For Reverse Charge Rule is :
Earlier of :
Date on which payment is
made.
From 61st day from date of
issue of invoice/ other
document by supplier.
• In case of Associated Enterprises (Supplier located outside India), TOS will be:
Whichever is earlier of :
Time of Supply - Services
Date of Entry in
Books of Recipient
of Supply Date of Payment

 Time of Supply in case of Voucher (e.g. Gift Voucher) is same for Goods as well as
Services.
• The Time of Supply is as follows :
 Residual Provision for Both
Date on which return is to be filed Where periodical return is to be filed
Date of payment of CGST/SGST In other cases, Such as Case identified by officer
Time of Supply
If Supply is Identifiable at that point
In Other Cases
Date of Issue of Voucher
Date of Redemption of Voucher

• Section 10: Supply of Goods other than Imports and Exports
Place of Supply (POS) - GoodsGoods
Where Supply Involves Movement of Goods
Place where movement terminates for
delivery
Where Supply does not involve Movement of
Goods. (i.e. Ownership of Goods changes
without movement of Goods)
Location of Goods when delivered to
Receipt
Goods Assembles / Installed at Site Place of Installation / Assembly
Goods Supplied on Board a conveyance,
vessel, aircraft, train, Motor Vehicle.
Location at which Such Goods are taken
on Board

• Section 10: Supply of Goods other than Imports and Exports
Friday, 22 December 2017
10
Place of Supply (POS) - Goods
Mr. B
Supplier
Mr. A
Mr.C
GujaratMaharashtra
Invoice 1
CGST + SGST Invoice 2
IGST
Bill-To Ship Transaction
Supplier deliver Goods to Person
- On the Direction of a Third Person
- Before or During Movement
- By Transfer of Documents of Title or
Otherwise
Principal Place of Business of third
Person shall be POS.
[ Third Person is deemed to have
received the Goods]
Third Person

• Section 11: Place of supply of goods imported into, or exported from India
Place of Supply (POS) - Goods
Movement of Goods
Outside India India
Goods imported into India
↓
Location of the importer
Movement of Goods
Outside India India
Goods exported from India
↓
Location outside India

Section 12: Place of supply of services where location of supplier and recipient is in India:
• Service being Intangible in Nature, the Place of Supply in case of determination of
POS of Service is Crucial. Unlike in case of goods, the movement of goods largely
decides the place of supply.
• The Place of Supply in case of Services have been defined in such a way that the
seamless credit flow will always be there, except in some cases.
General Rule in Case of Service is as follows,
Place of Supply (POS) - Services
Supply is Made to
Registered Person
Supply is Made to
Unregistered Person
POS Shall be the Location of Such Person
POS shall be Address of Receipt (If known)
or
Location of Supplier

• Section 12(3) to 12(14) contains the Specific Provision for the Place of Supply in Different Cases:
• The Summary of the few provisions is given below in Tabulated form for easy Understanding:
Sr no Situation Place of Supply
1
Immovable Property related Services including architects or interior
decorates, experts, estate agents, Grant of Right to Use.
Execution / co-ordinance of Construction work.
Accommodation by a Hotel, Inn, Guest house, Club or Campsite, House
Boat, other Vessel.
Accommodation & Services in Immovable Property for Marriage, official,
Social, Cultural, Religious or Business Function.
Any Services ancillary to Above.
Actual
or
Intended Location of Such
Immovable Property, Boat,
Vessel.
If Actual or Intended use of
Such Immovable is outside
INDIA
POS Shall Be Recipients
Location
2 Training, Performance Appraisal Service
- Supply to Registered Person Registered Receipt Location
- Supply to Unregistered
Person
Location of Actual Supply
3
Admission to a Event like Cultural, Artistic, Sporting, Educational,
Entertainment Event, Amusement Park, any Other Place
Actual Location of the Event,
Park , Other Place
4
Organization of Event like cultural, Artistic,
Sporting, Scientific, Educational,
Entertainment Event, Conference, Fair,
Exhibition, Celebration, Similar Event
- Event in India Actual Location of Event
- Event Outside India Recipient Location

Section 13 : Place of Supply of Services where location of Supplier or location of recipient is outside India
General Rule :
General Rule
Location of the Recipient
Available
in the Ordinary Course of
Business
Not Available
in the Ordinary Course of
Business
Recipient's Location Supplier's Location

Sr
no
Situation Place of Supply
1
Performance Based Services:
1. In Respect of Goods: The location where goods are required to be made available
for Performance.
2. Physical Presence is necessary for the Service
Location of Actual
Performance
Provided that In Respect of Goods:
1. If service electronically performed from remote location
2. If Goods temporarily imported in India for Repairs & Exported without use
1. Location of Goods
when Serviced
2. Location of recipient
2
Immovable Property related Services including experts, estate agents,
accommodation by a Hotel, Inn, Guest house, Club or Campsite, by whatever name
called, Grants of Rights to Use, Execution / co-ordinance of architects or interior
decorates.
Actual Location of
Property
OR
Intended to be located
3
Admission to Event Organization of cultural, Artistic, Sporting, Scientific, Educational,
Entertainment Event, Conference, Fair, Exhibition, Celebration, Similar Event
Actual Location of
Event

Sr
no
Situation Place of Supply
4
Banking Company, financial Institution, NBFC to its accounts holders
Intermediary Services
Hiring of transportation means, Yachts excluding Aircrafts and vessels, up to one
month.
Suppliers Location

Thank You!
Merry Christmas and Happy New Year
Paper Presenter : Dnyanesh Patade
Contact : patadednyanesh@gmail.com
17Friday, 22 December 2017

GST : Time and Place of Supply

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