GST Jamku AICHAPTER IV
TIME AND VALUE OF SUPPLY
Time of supply of goods.
Section 12(1)
The liability to pay tax on goods shall arise at the time of supply, as determined in accordance with the provisions of this section.
In simple terms, Section 12(1) outlines when the responsibility to pay taxes on goods comes into play. This is determined based on the rules laid out in this section.
Tax Liability and Time of Supply
The liability to pay taxes on goods is directly linked to the time of supply. In other words, when you need to pay taxes depends on the specific details outlined in this section.
Determining the Time of Supply
To figure out when the tax liability arises, one must refer to the provisions specified in Section 12(1). These provisions act as guidelines, helping individuals and businesses understand the crucial details surrounding the time of supply for taxable goods.
Conclusion
In summary, Section 12(1) plays a crucial role in establishing clarity regarding the liability to pay taxes on goods. By outlining the time of supply and providing specific provisions, this section acts as a valuable resource for individuals and businesses navigating the complexities of taxation on goods.
Section 12(2)
The time of supply of goods shall be the earlier of the following dates, namely:—
(a) the date of issue of invoice by the supplier or the last date on which he is required, under section 31, to issue the invoice with respect to the supply; or
(b) the date on which the supplier receives the payment with respect to the supply:
Provided that where the supplier of taxable goods receives an amount upto one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount.
Explanation 1.—For the purposes of clauses (a) and (b), "supply" shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment.
Explanation 2.—For the purposes of clause (b), "the date on which the supplier receives the payment" shall be the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account, whichever is earlier.
In simple terms, Section 12(1) outlines when the responsibility to pay taxes on goods comes into play. This is determined based on the rules laid out in this section.
Tax Liability and Time of Supply
The liability to pay taxes on goods is directly linked to the time of supply. In other words, when you need to pay taxes depends on the specific details outlined in this section.
Determining the Time of Supply
To figure out when the tax liability arises, one must refer to the provisions specified in Section 12(1). These provisions act as guidelines, helping individuals and businesses understand the crucial details surrounding the time of supply for taxable goods.
Conclusion
In summary, Section 12(1) plays a crucial role in establishing clarity regarding the liability to pay taxes on goods. By outlining the time of supply and providing specific provisions, this section acts as a valuable resource for individuals and businesses navigating the complexities of taxation on goods.
Section 12(3)
In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earliest of the following dates, namely:—
(a) the date of the receipt of goods; or
(b) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or
(c) the date immediately following thirty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier:
In situations where tax is paid or is liable to be paid on a reverse charge basis for supplies, the time of supply is determined based on specific criteria. The earliest of the following dates applies:
Receipt of Goods (a) The time of supply is considered to be the date when the goods are received.
Payment Date in Books of Account (b) Alternatively, it is the date of payment as recorded in the recipient's books of account or the date when the payment is debited in the bank account, whichever comes first.
Thirty Days from Invoice Issuance (c) Another option is the date immediately following thirty days from the issuance of the invoice or any other document, regardless of its name, by the supplier.
Section 12(4)
In case of supply of vouchers by a supplier, the time of supply shall be—
(a) the date of issue of voucher, if the supply is identifiable at that point; or
(b) the date of redemption of voucher, in all other cases.
Section 12(5)
Where it is not possible to determine the time of supply under the provisions of sub-section (2) or sub-section (3) or sub-section (4), the time of supply shall—
(a) in a case where a periodical return has to be filed, be the date on which such return is to be filed; or
(b) in any other case, be the date on which the tax is paid.
Section 12(6)
The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.
In the realm of taxation, specifically in the context of supplying vouchers, determining the time when the supply occurs is crucial. The law, as outlined in Section 12(4) of the relevant legislation, provides clarity on this matter.
Section 12(4): When Vouchers Are Involved
When a supplier is involved in providing vouchers, the time of supply is determined by two scenarios:
(a) If the supply can be identified at the point of issuing the voucher, then the time of supply is considered to be the date of issuing the voucher.
(b) In all other cases where the supply is not identifiable at the point of issuing, the time of supply is regarded as the date when the voucher is redeemed.
Section 12(5): When Time of Supply is Uncertain
Sometimes, it might be challenging to pinpoint the time of supply, especially under certain circumstances mentioned in sub-sections (2), (3), or (4). In such situations:
(a) If a periodic return is required, the time of supply is the date on which this return needs to be filed.
(b) In cases where a periodic return is not applicable, the time of supply is determined by the date when the tax is paid.
Section 12(6): Additional Value Matters
When considering the time of supply in relation to an increase in the value of the supply due to interest, late fees, or penalties for delayed payment, Section 12(6) comes into play. In such instances, the time of supply is the date when the supplier actually receives these additional amounts.
Conclusion
Understanding these sections is vital for businesses and individuals involved in the supply of vouchers. It provides a clear framework for determining the timing of supply, ensuring adherence to taxation regulations.