Time of supply of goods :

(i) General rule

The Model GST Law provides that the time of supply of goods shall be the earliest of the following dates:

(a)

(i) the date on which the goods are removed by the supplier for supply to the recipient, in a case where the goods are required to be removed or

(ii) the date on which the goods are made available to the recipient, in a case where the goods are not required to be removed, or

(b) the date on which the supplier issues the invoice with respect to the supply, or

(c) the date on which the supplier receives the payment with respect to the supply, or

(d) the date on which the recipient shows the receipt of the goods in his books of account.

Where goods are made available to the recipient refers to cases where the goods(i) are physically not capable of being moved; or (ii) are supplied in assembled or installed form; or (iii) are supplied by the supplier to his agent or his principal. The expression ’made available to the recipient’ mean when the goods are placed at the disposal of the recipient. For the purposes of clauses (b) and (c) above, the supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment.For the purpose of clause (c) above, “the date on which the supplier receives the payment” shall be the date on which the payment is entered in his
books of accounts or the date on which the payment is credited to his bank account, whichever is earlier.

(ii) Continuous supply of goods

In case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the time of supply shall be the date of expiry of the period to which such successive statements of accounts or successive payments relate. If there are no successive statements of account, the date of issue of the invoice (or any other document) or the date of receipt of payment, whichever is earlier, shall be the time of supply. The Model GST Law empowers the Central or State government to notify specified supply of goods as continuous supply of goods.

(iii) Reverse charge

In case of supplies in respect of which tax is payable on reverse charge basis, the time of supply shall be the earliest of the following dates;

(a) the date of the receipt of goods, or

(b) the date on which the payment is made, or

(c) the date of receipt of invoice, or

(d) the date of debit in the books of accounts.

(iv) Supply on approval basis

If the goods (being sent or taken on approval or sale or return or similar terms) are removed before it is known whether a supply will take place, the time of supply shall be at the time when it becomes known that the supply has taken place or six months from the date of removal, whichever is earlier.

(v) Residual provision

In case it is not possible to determine the time of supply as above, the time of supply shall (a) in a case where a periodical return has to be filed, the date on which such return is to be filed and in any other case, the date on which the CGST/SGST is paid