Time, Place and Value of Supply in GST

Q: What is the time of supply for goods under GST?

Time of supply of goods is earliest of:1. Date of issue of invoice2. Last date on which invoice should have been issued3. Date of receipt of advance/ payment.

Q: How is time of supply calculated under reverse charge mechanism?

Under RCM, this is how time of supply is calculated In case of goods In case of services The date of receipt of goods ORThe date of payment or the date on which the payment is debited in his bank account, whichever is earlier OR The date immediately after 30 days from the date of issue of invoice by the supplier The date of payment or the date on which the payment is debited in his bank account, whichever is earlier OR The date immediately after SIXTY (60) days from the date of issue of invoice by the supplierthe date of issue of invoice by the recipient, in cases where invoice is to be issued by the recipient

Updated on: Aug 11th, 2025

6 min read

Under GST, three types of taxes can be charged while issuing the tax invoice. Determining the right kind of tax is not an easy task. It depends on various factors, such as the time, the location of the supply, and the value of the goods or services being supplied.

To help address some of these situations, the GST Act lays down specific rules for each of these aspects, ensuring that the correct tax type, timing, and amount are applied in every scenario.

Time, Place and Value of Supply in GST

Why are time, place and value of supply important?

Time of supply means the point in time when goods/services are considered supplied’. When the seller knows the ‘time’, it helps him identify the due date for payment of taxes.
Place of supply is required for determining the right tax to be charged on the invoice, whether IGST or CGST and SGST will apply.
Value of supply is important because GST is calculated on the value of the supply. If the value is calculated incorrectly, then the amount of GST charged is also incorrect.

Time of Supply

Time of supply means the point in time when goods/services are considered supplied’. When the seller knows the ‘time’, it helps him identify the due date for payment of taxes.

CGST and SGST or IGST must be paid at the time of supply. Goods and services have a separate basis to identify their time of supply. Let’s understand them in detail.

Time of Supply of Goods

The time of supply of goods shall be the earlier of the following dates:

(a) The date of issuing of invoice (or the last day by which invoice should have been issued*)

(b) The date of receipt of payment

*In cases where the supply involves the movement of goods, the invoice needs to be issued at the time of removal. In other cases, the invoice needs to be issued at the time of delivery of goods to the recipient.

Notes:

If the supplier receives an amount up to Rs.1,000 in excess of the invoice amount, the time of supply for the extra amount shall be the date of issue of invoice (at the option of the supplier).
For (a) and (b)- The supply shall be assumed to have been made to the extent it is covered by the invoice or the payment (as the case may be).
For (b)- the date of receipt of payment shall be earlier of-
- The date on which he entered the payment in his books

The date on which the payment is credited to his bank account

Illustration:

(a) Date of invoice 15th May 2021

(b) Date of receipt of payment 10th July 2021

The time of supply will be 15th May 2021.

Time of Supply for Services

The time of supply of services shall be the earlier of the following dates:

(a) If invoice is issued within the period prescribed*, the date of issuing invoice OR the date of receipt of payment -whichever is earlier

(b) If invoice is NOT issued within the period prescribed*, the date of provision of service OR the date of receipt of payment – whichever is earlier

(c) Where the provisions of clause (a) or (b) do not apply, the date on which the recipient shows the receipt of services in his books of account

*Notes:

The invoice should be issued before the provision of service, or within 30 days after the provision of service, as per invoice rules (other than insurance or banking companies, or financial institutions).
If the supplier of taxable service receives an amount up to Rs. 1000 rupees in excess of invoice amount, the time of supply for the extra amount shall be the date of issue of invoice (at the option of the supplier).
For clauses (a) and (b) above-
- The supply shall be assumed to have been made to the extent it is covered by the invoice or the payment (as the case may be).
- The date of receipt of payment shall be earlier of –
  - The date on which supplier entered the payment in his books OR
  - The date on which the payment is credited to his bank account.

Example:

Date of invoice 15th May 2018
Date of receipt of payment 10th July 2018
Date when suppli

Time of Supply under Reverse Charge

Reverse charge means the liability to pay tax is by the recipient of goods/services instead of the supplier.

In case of reverse charge, the time of supply shall be the earliest of the following dates—

In case of goods	In case of services
The date of receipt of goods OR The date of payment or the date on which the payment is debited in his bank account, whichever is earlier OR The date immediately after 30 days from the date of issue of invoice by the supplier	The date of payment or the date on which the payment is debited in his bank account, whichever is earlier OR The date immediately after SIXTY (60) days from the date of issue of invoice by the supplier the date of issue of invoice by the recipient, in cases where invoice is to be issued by the recipient
If it is not possible to determine the time of supply under (a), (b) or (c), the time of supply shall be the date of entry in the books of account of the recipient of supply	If it is not possible to determine the time of supply under (a), (b) or (c), the time of supply shall be the date of entry in the books of account of the receiver of service
For example (a) Date of receipt of goods 15th May 2021 (b) Date of payment 15th July 2021 (c) Date of invoice 1st June 2021 (d) Date of entry in books of receiver 18th May 2021 Time of supply of goods 15th May 2021 If for some reason time of supply could not be determined supply under (a), (b) or (c) then it would be 18th May 2018 i.e., date of entry	For example: M/s ABC Pvt. Ltd undertook service of a director Mr. X worth Rs. 50,000 on 15th January. The invoice was raised on 1st February. M/s ABC Pvt Ltd made the payment on 1st May. The time of supply, in this case, will be earliest of – Date of payment = 1st May 60 days from date of date of invoice – 2nd April Date of issue of invoice by the recipient – 1st February Thus, the time of supply of services is 1st February.

Place of supply

It is very important to understand the term ‘place of supply’ for determining the right tax to be charged on the invoice.

Here is an example:

Location of Recipient	Place of supply	Nature of Supply	GST Applicable
Maharashtra	Maharashtra	Intra-state	CGST + SGST
Maharashtra	Kerala	Inter-state	IGST

Place of Supply of Goods

Usually, in the case of goods, the place of supply is where the goods are delivered.

So, the place of supply of goods is the place where the ownership of goods changes.

What if there is no movement of goods?

In this case, the place of supply is the location of goods at the time of delivery to the recipient.

For example: In case of sales in a supermarket, the place of supply is the supermarket itself.

Place of supply in cases where goods that are assembled and installed will be the location where the installation is done.

For example, A supplier located in Kolkata supplies machinery to the recipient in Delhi. The machinery is installed in the factory of the recipient in Kanpur. In this case, the place of supply of machinery will be Kanpur.

Place of Supply for Services

Generally, the place of supply of services is the location of the service recipient.

In cases where the services are provided to an unregistered dealer and their location is not available the location of the service provider will be the place of provision of service.

Special provisions have been made to determine the place of supply for the following services:

Services related to immovable property
Restaurant services
Admission to events
Transportation of goods and passengers
Telecom services
Banking, Financial and Insurance services

In case of services related to immovable property, the location of the property is the place of provision of services.

Example 1:

Mr. Anil from Delhi provides interior designing services to Mr. Ajay(Mumbai). The property is located in Ooty(Tamil Nadu).

In this case, place of supply will be the location of the immovable property i.e. Ooty, Tamil Nadu.

Example 2:

A registered taxpayer offers passenger transport services from Bangalore to Hampi. The passengers do not have GST registration. What will be the place of supply in this case?

The place of supply is the place from where the departure takes place i.e. Bangalore in this case.

Value of Supply of Goods or Services

Value of supply means the money that a seller would want to collect the goods and services supplied.

The amount collected by the seller from the buyer is the value of supply.

But where parties are related and a reasonable value may not be charged, or transaction may take place as a barter or exchange; the GST law prescribes that the value on which GST is charged must be its ‘transactional value’. This is the value at which unrelated parties would transact in the normal course of business. It makes sure GST is charged and collected properly, even though the full value may not have been paid.

Frequently Asked Questions

How is the value of supply calculated under GST?

Under GST, the tax is charged on the transactional value. Transaction value is the price actually paid(or payable) for the supply of goods/services between un-related parties (i.e., price is the sole consideration).

What is the time of supply for goods under GST?

Time of supply of goods is earliest of:

1. Date of issue of invoice

2. Last date on which invoice should have been issued

3. Date of receipt of advance/ payment.

What is the place of supply for goods under GST?

Usually, in case of goods, the place of supply is where the goods are delivered. So, the place of supply of goods is the place where the ownership of goods changes.

In case there is no movement of goods, the place of supply is the location of goods at the time of delivery to the recipient.

How is time of supply calculated under reverse charge mechanism?

Under RCM, this is how time of supply is calculated

In case of goods	In case of services
The date of receipt of goods OR The date of payment or the date on which the payment is debited in his bank account, whichever is earlier OR The date immediately after 30 days from the date of issue of invoice by the supplier	The date of payment or the date on which the payment is debited in his bank account, whichever is earlier OR The date immediately after SIXTY (60) days from the date of issue of invoice by the supplier the date of issue of invoice by the recipient, in cases where invoice is to be issued by the recipient

What is the place of supply in case of exports and imports?

The place of supply in case of exports and imports

	Goods	Services
Imported into India	Location of the importer	Location of the service recipient
Exported from India	Location outside India	Location outside India.

Are discounts included in the value of supply?

The value of supply excludes discounts under certain conditions.

How are incidental expenses and taxes treated in value of supply?

Currently, GST will be charged on the ‘transaction value’. Transaction value is the price actually paid(or payable) for the supply of goods/services between un-related parties (i.e., price is the sole consideration). Hence, the value will include all incidental expenses in relation to sale such as packing, commission etc.