Time, Place and Value of Supply for good services under GST

Under the GST, three types of taxes can be sent to the tax account. In the case of an interstate operation, a state-run operation and SGST and CGST in the case of IGST. However, it is not easy to determine if a particular operation is intermittent or intrinsic.

Why is the place and value of a security important?

Supply time :- is the time when goods / services are provided. When the seller knows “the time”, it helps him to determine the time to pay taxes.

Presentation location :- is required to determine the tax that will be payable on the invoice, whether IGST or CGST / SGST will be applied.

Value of the supply :-  is important because the GST is calculated by the cost of sales. If the value is calculated correctly, the volume of the GST is also incorrect.

1. Maintenance period

The supply time is the time when goods / services are provided. When the seller knows “the time”, it helps him to determine the time to pay taxes.

CGST / SGST or IGST delivery. There is a separate reason for determining the terms of supply of goods and services. Understand them in detail.

A. Time of Supply of Goods

Time of supply of goods is earliest of:

1. The date on which the invoice was issued

2. The deadline for the date on which the invoice was issued

3. Date of receipt / payment.

For example:

Mr. X sold his property at 1,00 thousand Rs. The invoice was issued on January 15. The payment was received on January 31. The goods were issued on 20 January.

* Note: GST can not be used for advances under GST. In Advance, the GST must be paid at the time of the invoicing. Notification No. 66/2017 – Central Tax is given on 15.11.2017

In this case, let’s look at the time of delivery and come.

At least the time of supply –

1. Date of receipt of invoice = January 15th

2. The deadline for the date of the invoice issuance = January 20th

Thus, the supply period is 15th January.

What happens if the Rs 50,000 advance payment is accepted by Mr X on January 1?

1st January at the time of the advance payment of Rs 50,000 (prior to the date of receipt of the advance payment). For the Rs 50,000 balance, the shipping time will be January 15th.

B. Service Delivery Time

The service delivery deadline is at least:

1. The date on which the invoice was issued

2. Date of receipt of the deposit / payment.

3. The date on which services are rendered (if the invoice is not filed within the prescribed time limit)

Here’s an example:

Mr. A serves Mr B in the amount of 20,000 Rs on 1 January. The invoice was issued on 20 January and the same payment was accepted on February 1.

In the present case, we must check 1 as the invoice is issued within the prescribed time limit. The submitted time is 30th days since 31st January. The invoice was issued on January 20. Here’s what the invoice has been given in the specified time frame.

The supply period will be the earliest –

1. The date on which the invoice was issued – January 20th

2. Payment Date = February 1st

The service delivery period will be January 20th.

C. Delay time for supplies

In the event of a reverse charge, the time offered by the service recipient is at least:

1. Payment Date *

2. 30 days from the date of sending the goods to the account (60 days for service)

* w.e.f. 15.11.2017 ‘Payment Date’ is not applicable to goods and is only for services. Notification No. 66/2017 – Central Taxation

For example:

M / s ABC Pvt. The director of the LLC has started the service of X X. 50 minutes on January 15. Invoice was removed on February 1. M / s ABC Pvt Ltd paid on May 1.

The maintenance time, in this case, will be the earliest –

1. Payment Date May 1st

2. 60 days from the date of invoice = April 2nd

Thus, the service deadline is April 2nd.

2. Location of the supply

It is important to understand the “place of supply” to determine the tax on the invoice.

Here is an Example:

Location of Service Receiver Place of supply Nature of Supply GST Applicable
Maharashtra Maharashtra Intra-state CGST + SGST
Maharashtra Kerala Inter-state IGST

A. Location of goods

In General, in the case of goods, the place where the goods are sold.

Thus, the place of supply of goods is the place where the property is changed.

What if the goods are not moving. In this case, the delivery location is a commodity in the delivery of the buyer.

For Example: in a supermarket, the point of sale is supermarket.

Installed and installed goods will be provided at locations where the placement is performed.

For example, a supplier in Kolkata delivers a car to a buyer in Delhi. The machine is installed at the receiver’s factory in Kanpur. In this case, the supply of the equipment will be Kanpur.

B. Place of Supply for Services

In general, the place of service is where the recipient is located.

Where an unregistered dealer is offered and where it is not possible to locate the service, the location of the service provider will be the service location.

Specific provisions have been developed to identify the location for the following services:

  • Real estate related services
  • Restaurant services
  • Admission to events
  • Transportation of goods and passengers
  • Telecom services
  • Banking, Finance and Insurance Services.

In the case of real estate-related services, the location of the property is the location.\

For Example:

Mr. Anil from Delhi offers interior design services for Mr Ajay (Mumbai). Property is located in Ooty (Tamil Nadu).

In this case, the place of supply will be the real estate, namely Ooty, Tamil Nadu.

3. Cost of supply of goods or services

The Cost of the supply means money that the merchant wants to accumulate with the goods and services supplied.

The amount collected from the buyer by the seller is the value of the supply.

However, when the parties are related and a reasonable value can not be prosecuted, or they may have barter or exchange bargaining; It is important that the value of the GST paid by GST be its “operating cost.”

This is the value that non-affiliated parties will engage in normal business activity. Despite the fact that the full value is not paid, GST ensures accurate calculation.

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Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.

Certicom Consulting

Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.