Time of Supply, Place of Supply, and Value of Supply in GST

Time of Supply, Place of Supply, and Value of Supply in GST**

**I. Time of Supply (TOS):**

**Meaning of Goods and Services:**

- In the context of GST, "goods" refer to tangible items, while "services" pertain to intangible activities provided for consideration.

**TOS Under Reverse Charge Mechanism:**

- Under reverse charge, the liability to pay GST is shifted from the supplier to the recipient of goods or services.

- Time of supply under reverse charge is the earliest of the following:

  1. Date of receipt of goods or services.

  2. Date of payment as per books.

  3. Date immediately after 30 days from the supplier's invoice.

**Invoicing Provisions:**

- Invoicing is a critical aspect of GST compliance.

- A GST-compliant invoice should include supplier and recipient details, description of goods/services, GSTIN, HSN/ SAC codes, and more.

**Provisions Related to Change in GST Rate:**

- When the GST rate changes for a particular product or service, there are specific rules to determine the tax liability:

  - If the supply is before the rate change, the old rate applies.

  - If the supply is after the rate change, the new rate is applicable.

**II. Place of Supply (POS):**

**POS Meaning:**

- Place of supply refers to the location where a supply of goods or services is considered to have occurred for GST purposes.

**POS of Goods and Services:**

- The POS rules differ for goods and services:

  - For goods, it's usually the location where the goods are delivered.

  - For services, it can be the supplier's place, recipient's place, or a third location, depending on various factors.

**Intra and Interstate Supply:**

- Intra-state supply occurs when both the supplier and recipient are in the same state, and SGST + CGST are applicable.

- Interstate supply happens when the supplier and recipient are in different states, and IGST is applicable.

**III. Value of Supply:**

**Meaning:**

- The "value of supply" is the amount on which GST is calculated for a particular transaction.

**Provisions Related to Determination of Value of Supply of Goods and Services:**

- The value of supply includes:

  - The transaction value (price) between unrelated parties.

  - Additions such as taxes, duties, and incidental expenses.

  - Exclusions like subsidies and discounts.

**Determination of GST Liability:**

- GST liability is calculated by applying the relevant GST rate to the value of supply.

- Input Tax Credit (ITC) can be deducted from the GST liability, resulting in the final tax payable.

These academic notes cover the essential concepts of Time of Supply, Place of Supply, and Value of Supply in the context of GST, along with associated provisions and mechanisms.