Introduction – Significance of Time of Supply

# Time of Supply – Introduction

## Why Time of Supply Matters

• Time of supply provisions determine WHEN the liability to pay tax arises:
• CGST + SGST/UTGST for intra-State supply, or
• IGST for inter-State supply.
• It fixes the point of tax liability; the actual payment can still be made on or before the prescribed due date.
• Without a precise time of supply rule, taxpayers could not determine the tax period to which a supply belongs, the rate of tax, or the return in which it must be declared.

## Key Statutory Provisions

## Practical Takeaways

• Time of supply is independent of the due date for payment of tax.
• It governs which tax rate applies (relevant when rates change) and which return reflects the liability.
• Different rules apply for forward charge vs reverse charge, and for goods vs services.