The property is located in Ooty(Tamil Nadu). Anil from Delhi provides interior designing services to Mr. In case of services related to immovable property, the location of the property is the place of provision of services. Banking, Financial and Insurance services.Special provisions have been made to determine the place of supply for the following services: In cases where the services are provided to an unregistered dealer and their location is not available the location of service provider will be the place of provision of service. Generally, the place of supply of services is the location of the service recipient. In this case, the place of supply of machinery will be Kanpur. The machinery is installed in the factory of the recipient in Kanpur. Place of supply in cases where goods that are assembled and installed will be the location where the installation is done.įor example, A supplier located in Kolkata supplies machinery to the recipient in Delhi. In this case, the place of supply is the location of goods at the time of delivery to the recipient.įor example: In case of sales in a supermarket, the place of supply is the supermarket itself. So, the place of supply of goods is the place where the ownership of goods changes. Usually, in case of goods, the place of supply is where the goods are delivered. Here is an example: Location of Service Receiver It is very important to understand the term ‘ place of supply’ for determining the right tax to be charged on the invoice.

Thus, the time of supply of services is 2nd April. 60 days from date of date of invoice – 2nd April.The time of supply, in this case, will be earliest of – M/s ABC Pvt Ltd made the payment on 1st May. ‘Date of Payment’ is not applicable for goods and applies only to services. 30 days from date of issue of invoice for goods (60 days for services).In case of reverse charge the time of supply for service receiver is earliest of: This means that the time of supply of services will be 20th January. Date of issue of invoice – 20th January.This means that the invoice was issued within a prescribed time limit. The prescribed time is 30 days from the date of supply i.e. In the present case, we need to 1st check if the invoice was issued within the prescribed time. The invoice was issued on 20th January and the payment for the same was received on 1st February. A provides services worth Rs 20000 to Mr. Date of provision of services (if invoice is not issued within prescribed period).Time of supply of services is earliest of: For the balance Rs 50,000, the time of supply will be 15th January. The time of supply for the advance of Rs 50,000 will be 1st January(since the date of receipt of advance is before the invoice is issued). What will happen if, in the same example an advance of Rs 50,000 is received by Mr. Last date on which invoice should have been issued – 20th January.Date of issue of invoice – 15th January.Let us analyze and arrive at the time of supply in this case. GST in Advance is payable at the time of issue of the invoice. *Note: GST is not applicable to advances under GST. The payment was received on 31st January. Last date on which invoice should have been issued Goods and services have a separate basis to identify their time of supply. When the seller knows the ‘time’, it helps him identify due date for payment of taxes.ĬGST/SGST or IGST must be paid at the time of supply. Time of supply means the point in time when goods/services are considered supplied’. If the value is calculated incorrectly, then the amount of GST charged is also incorrect Value of supply is important because GST is calculated on the value of the sale.Place of supply is required for determining the right tax to be charged on the invoice, whether IGST or CGST/SGST will apply.When the seller knows the ‘time’, it helps him identify due date for payment of taxes. Time of supply means the point in time when goods/services are considered supplied’.Why are time place and value of supply important?

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