When to Issue Invoice under GST? – Time of Supply

The concept of time of supply under GST is directly linked to the issue of a GST invoice. We look at both the time to issue an invoice under GST and the time of supply in-depth in this post.When to Issue Invoice under GST?

When should a GST invoice be issued?

When the value of a supply of goods or services exceeds Rs.200, the supplier must send a GST invoice. If a customer requests an invoice, a provider who has registered with GST for providing goods and services must produce an invoice regardless of the taxable value.

The time it takes to issue a GST invoice varies depending on the type of supply, such as goods or services.

In some situations, however, the supplier must provide a tax invoice at the time of delivery or when the products are made accessible to the recipient. In some instances, the supplier can issue a delivery challan to produce a GST Eway bill and carry the products to the recipient without providing a tax invoice.

The tax invoice for services must be issued before or after the service is provided, but no later than thirty days after the service is provided.

When should the GST estimate be issued?

When a supplier issues an invoice, he or she becomes responsible for remitting the GST tax amount specified on the invoice. As a result, an invoice should only be sent if the supply has begun or payment has been received. If neither the supply nor the payment has begun, it’s ideal to send the receiver an estimate that includes a breakdown of the pricing, GST tax payable, and GST rates that apply.

Should an invoice be issued for advance payment received?

In the event that advance payment for goods or services is received, a GST receipt voucher might be provided. A GST refund voucher can be given if the services or commodities are not provided and the payment is reimbursed.

However, even after issuing a receipt voucher, the tax applies to payments made in advance for the supply of goods or services.

Time of Supply under GST

The date on which a person registered for GST has a tax liability is known as the time of supply. The technique for calculating the time of supply for various types of transactions is covered by several clauses of GST law.


When to Issue Invoice under GST?

Time of Supply for Goods

The earliest of the following dates is the time of supply for goods:

  • The date on which a supplier issues an invoice. The last due date for issuing the invoice will be extended if the invoice is not provided.
  • The date on which the money was received by the supplier.

The period of supply for services is the earliest of the following dates:

  • The date on which a supplier issues an invoice. The service invoices must be provided by the supplier within 30 days of the services being rendered.
  • The date on which the payment was received.

If none of the foregoing methods can be used to determine the time of supply, the time of supply will be the earlier of the date of GST return filing or the date of GST payment.