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

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


A GST supply/transaction’s time, place, and value assist taxpayers in determining the tax rate to be paid. It is important for a taxpayer to know the applicable CGST, SGST, and IGST rates when preparing a GST-compliant invoice. Using these invoices, a taxpayer will be able to file his GST returns correctly. The Goods and Services Tax (GST) has laid down certain laws and provisions concerning the determination of the time, place, and value of supply. 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 taxation system for destination/consumption where it is subject to taxation to supply goods or services which are taxable under the GST regulations. The form of supply for products or services includes several 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 GST products or services in a detailed summary.

Supply time under GST


Supply time refers to the period of time when goods and services are considered to be supplied or sold. The time of arrival helps a seller to settle on the due date to pay his GST debt. The vendor has to pay CGST / SGST and IGST at the time of sale. The regulations to determine the time of delivery vary for goods and services.


The requirement to pay SGST / CGST shall only take effect at the time of delivery of the goods. Here, the earliest date for the distribution of goods is essentially taken into account when the following conditions are met:


  • 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


In order to understand the role of the supply of goods and services, the taxpayer needs to settle on the appropriate tax to be paid on the invoice. This dictates whether a distribution is intrastate or interstate.


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


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


Generally speaking, the place where the items are distributed is one where the goods are to be delivered. The area where products are sold is also the location where the ownership of product changes.


However, if there is no movement of goods, then the place of delivery is understood to be the location of the goods at the time of shipment to the receiver.


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.


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