Why time, place, and value of supply are mandatory under GST

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As we know that under GST all the taxpayers are liable to pay three kinds of taxes and those are IGST, SGST, CGST, but having idea about all the supplied goods that whether the goods are interstate supply or the intrastate supply. This can be only differentiating by the help of the necessary details related to the particular goods.

Let’s know the differences between all the things which are mandatory to have while supplying the goods

  • Time: – according to the GST law showing the time of the good which is going to be supplied is mandatory because by the help of that mentioned time the seller will have the idea of the time of tax payment.
  • Place: – according to law it is mandatory to have place of supply to be mentioned on the supplied goods so that the seller can easily get the idea about which tax do they need to pay on. Whether the IGST or CGST, SGST.
  • Value: – according to the GST law it is mandatory to have value of the supply, so that the seller can get to know the main value on which the tax will be pay by the seller on their sale.

TIME OF SUPPLY

Mentioning the time of supply is mandatory in order to know the time of tax payment, as paying tax on the sale is mandatory.

The time of supply should be prior than the mentioned situation.

  1. Date of the invoice issue
  2. Last date on which invoice should have been issued
  3. Date of receipt of advance/payment.

Let’s suppose Mr. Ram has sold goods to Mr. john. The price of the goods was 50,000. The issuance of the invoice was 15 January but the goods were supplied on 20 March.  And the payment against those goods was made on 30 March.

Then the time of supply will be consider as the date of invoice issue that is 15 March.

TIME OF SUPPLY FOR SERVICE

The time of supply for service should be prior than the mentioned situation.

  1. Date of the invoice issue
  2. Date of receipt of advance /payment.
  3. Date of provision of service (if invoice is not issued within prescribed date)

Let’s suppose Mr. Ram provided the service to Mr. john on 1 February and the worth of that service was 20000. So the date of the issuance of that invoice was 20 February and the payment of that service was received on 1st march

Then the time of supply will be consider as the date of invoice issue that is 20 February.

TIME OF SUPPLY UNDER REVERSE CHARGE

The time of supply for service should be prior than the mentioned situation.

  1. Date of payment (not applicable for service , applicable on for goods)
  2. 30 days from the date of issuance for good and for service it is 60 days.
    Let’s suppose a private limited company undertook service of a director of the amount of 50,000 on 15 March. The invoice was raised on 1 February and the payment was made by the company on 1 May.
    Then the time of supply will be consider as the date of invoice issue that is 2 April (60 days from the date of date of invoice)

PLACE OF SUPPLY

Place of supply will be the place where the good have delivered or installed.
Suppose if Mr. Ashish providing designing service to Mr. roshan who are living in the Mumbai but the service where it going to be apply is located at Tamil Nadu.
Than the place of supply will be Tamil Nadu.

VALUE OF SUPPLY

According to the GST law the government has defined that the every registered taxpayer has to pay the tax on their sale. The taxes are divided between 2 parts that is IGST and CGST, SGST.
So it is mandatory to mention the value of supply so that the taxpayers can pay tax on the basis of that amount of main value

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