Monday 27 November 2017

Time limit for Issuance of Invoice in case of Supply of Goods or Services

The Liability to Pay Tax arises at Point of taxation. The Point of taxation under GST is determined by Time of Supply of Goods and/or Services. Determination of Time of Supply  enables the Supplier of Goods and/or Services to identify the timeline within which, the GST Tax liability has to be discharged.

Time of Supply of Goods 


Time of Supply in case of Goods will be earliest of the following :

  • Actual date of Issue of Invoice by the Supplier or
  • Date on which payment is credited to the Books of Accounts of the Supplier or
  • Date on which payment is credited to the Suppliers Bank account or
  • Last Date/Due Date on which the Supplier is required to Issue the Invoice
Due Date for issuance of Invoices in case of Supply of Goods except for certain notified categories is:


  • The Time of Removal of Goods for Supply where Supply involves movement of goods 
  • The Time of Receipt of Approval or 6 months from the date of removal of goods, whichever is earlier where Sale is on approval basis
  • The Time of Delivery of goods to the recipient where the Supply does not involve any movement of goods.

 Time of Supply of Services


Time of Supply in case of Services will be earliest of the following :


  • Actual date of Issue of Invoice by the Supplier or
  • Date on which payment is credited to the Books of Accounts of the Supplier or
  • Date on which payment is credited to the Supplier's Bank account or
  • Last Date/Due Date on which the Supplier is required to Issue the Invoice
In case of Supply of Services except for certain notified categories, invoices should be issued within 30 days of Provision of Services.

Time of Supply of Goods and/or Services may vary in case of Continuous Supply of Goods and/or Services which will be covered in the next blog.

- Pooja Teli

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