1. Time and Value of Supply
CA.PREETY PARIK

2. Time of Supply- Time of Supply = Liability to pay Tax Time of Supply
Payment
Invoice
Date of payment entered in Books of Account
Date of receipt credited in Bank Statement
Date of Issue of Invoice
Due Date for Issue of Invoice –
Sec 31

3. Date for Issue of Invoice - Sec.31
Supply of Goods
Time for Issue of Invoice
Involves Movement of Goods
Before or at the Time of Removal of Goods
Does not involve movement of Goods
Before or at the Time of Delivery or making available the Goods to the recipient
Certain Supplies notified by Government on recommendation of Council
Time and Manner for Issue of Invoice as may be prescribed
Continuous supply of Goods- Successive Statement of accounts are involved
Before or At the time each statement is issued
Continuous supply of Goods- Successive payments are involved
Before or At the time each payment is received
Goods sent on approval
Before or At the time of supply or six months from the date of removal whichever is earlier

4. Date for Issue of Invoice - Sec.31
Supply of Services
Time for Issue of Issue
General
Before Supply of Service
or Within 30 days of Supply of Service
In case of Banks/ Financial Institutions/ NBFC/ Insurance
Within 45 days of supply of service
Continuous supply of Services-
Due date for payment is ascertainable from the contract
On or before the due date for payment
Due date for payment is not ascertainable from the contract
On or before the time supplier receives payment
Payment linked to completion of an event
On or before the date of completion of event

5. Time of Supply- Goods Earlier of the Following:-
Date of issue of Invoice
Due Date for issue of invoice u/s 31
Date of receipt entered received in Books
of Account of Supplier
Date of Credit in Bank Statement of supplier.

6. Time of Supply- Goods (Reverse charge Mechanism)
Earlier of the Following:-
Date of receipt of Goods
Date following 30days from date of invoice/ any other document issued by the supplier
Date of payment made in Books of Account of recipient
Date of debit of payment in Bank Statement of recipient
If above not possible to determine TOS as above then:-
Date of entry in Books of Account of the recipient of Supply

7. Time of Supply- SERVICES Earlier of the Following:-
(if invoice is issued within time limit = 30 days/ 45 days from provision of Service)
Earlier of the Following:-
Date of issue of Invoice
Date of receipt entered in Books of Account of supplier
Date of credit of receipt in Bank Statement of supplier
If above not possible to determine TOS as above then:-
Date of entry of receipt of services in Books of Account of the recipient of Supply

8. Time of Supply- SERVICES Earlier of the Following:-
(if invoice is not issued within time limitof 30 days/45 days from provision of Service)
Earlier of the Following:-
Date of provision of service
Date of receipt entered in Books of Account of supplier
Date of credit of receipt in Bank Statement of supplier

9. Time of Supply- Services (Reverse charge Mechanism)
Earlier of the Following:-
Date following 60 days from date of invoice/ any other document issued by the supplier
Date of payment entered in Books of Account of recipient
Date of debit of payment in Bank Statement of recipient
If above not possible to determine TOS as above then:-
Date of entry in Books of Account of the recipient of Supply

10. Time of Supply- Import of Services between associated enterprises
Supplier of services is located outside India
TOS= Date of entry in Books of Account of recipient or date of payment, whichever is earlier
Import of Services after the appointed day
Liable to Tax under GST even if Invoice has been received or payment has been made before the appointed day. If the Tax on such import has been paid in full under existing law, no GST. If tax has been paid in part, balance amount of Tax will be paid under GST

11. Time of Supply- Goods or Services –By issue of Voucher
If Supply if identifiable – Date of Issue of Voucher
Else
Date of Redemption of Voucher

12. Time of Supply- Goods and Services
Supply deemed to made = to the Extent covered by Invoice or Payment.
In case of payment of upto Rs.1000,
TOS= Date of Issue of Invoice, at the option of supplier
If TOS cannot be determined by any of the previous provisions (as covered by earlier slides) then:-
TOS= Date on which return is to be filed or
Date on which Tax is Paid

13. Time of Supply- Goods or Services –
Addition in value of Supply on account of late payment of consideration for supply by way of interest, penalty, late fees
= Date of receipt of such Value by the supplier

14. Time of Supply- Supply of Goods Date of issue of Invoice
Last date for issue of Invoice
Date of payment in books of Account
Date of payment in Bank Statement
TOS
Invoice raised before
Removal
28/10/17
02/11/17
30/11/17
1/12/17
Advance Received
02/11/15
31/10/17
01/11/17
Delayed Invoice
26/10/17
20/10/17
05/11/17
07/11/2017
Goods sent on approval
Goods sent 31/07/2017
01/03/2018
31/01/2018
15/3/2018
16/03/2017

15. Time of Supply- Goods or Services supplied before Change
There is change in Tax Rate, TOS will be as per the following:-
Goods or Services supplied before Change
Before Change
After Change
Time of Supply
Invoice Issued
Payment Received
Earlier of the Two
Date of Issue of Invoice
Time of receipt of payment
Payment Received= Date of payment entered in Books or credit in bank whichever is earlier.
Receipt of bank =Credit in bank= after four working days from change in tax

16. Time of Supply- Goods or Services supplied After Change
There is change in Tax Rate, TOS will be as per the following:-
Goods or Services supplied After Change
Before Change
After Change
Time of Supply
Invoice Issued
Payment Received
Earlier of the Two
Date of receipt
Date of issue of Invoice
Payment Received= Date of payment entered in Books or credit in bank whichever is earlier.
Receipt of bank =Credit in bank= after four working days from change in tax

17. Value of Supply- Supply of Goods or Services
Supplier and Recipient are not related
Price is sole consideration of Supply
VALUE of Supply = Transaction Value (TV)
TV= Price Actually paid or payable for supply

18. Value of Supply- Value of Supply Includes:-
Taxes, duties, cess, charges levied under any law other than GST, if charged by Supplier
Amount payable by supplier wrt supply but incurred/ paid by recipient and not included in TV
Incidental Expenses
Amount charged for anything done before/ at the time of supply
Interest/ late fees/ penalty for delayed payment of consideration for supply
Subsidies (other than Central/State Govt) linked to price.

19. Value of Supply- DISCOUNT Value of Supply not to include
- Discount given before or at the time of supply and recorded on invoice of supply.
Discount after the supply if
a. It is as per agreement entered before/at time of supply
b. It is specifically linked to relevant invoices
c. ITC wrt discount (on basis of credit note issued by
supplier) has been reversed by the recipient of supply.

20. Value of Supply- Consideration is not Wholly in Money
Open Market Value (MV)
Sum of Money+ Money value of consideration not in money
Value of like kind and quality
Sum of Money + ( consideration not in money= 110% of cost of production/manufacture/acquisition)
Sum of money + (consideration not in money= residual method= reasonable means)
# sequence to be followed

21. Value of Supply- Open Market Value Full Value in money excluding GST
Transaction between unrelated supplier and recipient
Price is consideration of supply
Supply is at same time when the supply being valued is made

22. Value of Supply- Supply of like kind and quality
Supply in similar circumstances
Has characteristics, quality, quantity, functional components, materials and reputation
Resembles supply being valued

23. Value of Supply- Supply between Related or Distinct Persons
Open Market Value
If recipient is eligible for ITC, invoice value deemed to be open market value
Value of like kind and quality
110% of cost of production/acquisition
(in case of services, supplier may disregard 110% rule)
Residual Method
# sequence to be followed

24. Value of Supply- Supply between Principal and Agent
Open Market Value of supply or
90% of price charged by Agent to customer of like kind and quality (at option of supplier)
110% of cost of production/acquisition
(in case of services, supplier may disregard 110% rule)
Residual Method
# sequence to be followed

25. Value of Supply- Specific Services-
Money Changing / purchase or Sale of Foreign Currency
(Buy Rate- Sale Rate) * No of units
1% of amount of rupees received or paid
1% Lesser of any currency receivable in rupees
OR option
> Rs.1 Lacs = 1% of value of exchange, min Rs.250
<1L >10L= ½% of (value of exchange -1L) + Rs.1000
>10L= 1/10% of (Value of exchange- 10L) +Rs.5000

26. Value of Supply- Specific Services-
Booking of Tickets by Air Travel Agent for Travel by Air
Domestic Travel= 5% of Basic Fare
International Travel =10% Basic Fare
Basic Fare = Part of Air Fare on which commission is
paid to travel agent by Airline company

27. Value of Supply- Specific Services- Life Insurance Business
NA- entire premium paid for risk cover in life insurance
Gross Premium – allocated for investment
(if intimated to policy holder at the TOS)
In case of single Annuity policy = 10% premium
In all other cases
First Year= 25% premium
Subsequent Years = 12.5% premium

28. Value of Supply- Specific Goods- Trading in Second hand goods
Used goods as such
including minor processing done that does not change nature of Goods
NO ITC taken on purchase
VALUE = Selling Price- Purchase Price
If –ve Value shall be ignored.

29. Value of Supply- Specific Goods or Services-
Supply against Voucher, Token, Coupon or Stamp
Value= Money Value of Goods/ Services or both redeemable against such token, voucher, coupon or stamp.
Value of Taxable Service shall be deemed to be NIL
Provided by class of Service providers – *between distinct persons
As may be notified by the government on recommendation of council

30. Value of Supply- Specific Services Supply of Services of Pure Agent
Value of Supply shall exclude all cost of services incurred by the Agent on behalf of the principal *** subject to conditions
CIF Agent at Bombay
Principal at Aurangabad
Custom Duty, port charges
Exclude charges from valuation

31. Value of Supply- Supply of Services of Pure Agent Conditions:-
Contract is between third party and recipient
Recipient is liable to make payment to third party
Recipient authorizes the supplier to make payment on his behalf
Recipient knows the services shall be provided by third party
Payment made by supplier has been indicated in invoice issued by supplier
The supplier recovers only such amount paid to third party
Service procured by the supplier are in addition to supply he provides on his own account.