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Written invoice example for Support

e e e e e e yes Genie good evening everybody present over there uh Chile good evening to everyone now in the last lecture we did the topic of yes good evening hon we did the topic of exemption anybody has any questions in any part of exemption I'll first take up that before I proceed to the next topic anybody yes hon please go ahead beta can you unmute and speak himon sir could you see my message I have let me again check B I just saw yes sir only yes sir I'm seeing B oh is this a long m i don't so you can just speak out not a problem tell me okay sir uh sir this is regarding serial number 41 A and 41b mhm uh this is basically talking about that TDR rights um transfer of development rights okay beta now uh see there is I visualize that there should be three cases goad I'm trying to send this three cases to you so that no problem it may come in a time in the meantime you can tell me now what are your issues you can tell me okay sir see the land owner transfers develop rights and the promoter builds it and 100% see the case one is I'm saying there will be three parties land owner promoter and the buyer H now the case one I what I visualize is um so uh what happens the the promoter builds and during that building time he has got 100% booking H so what would be the GST if it is 100% it is if it is 100% booking before completion certificate is obtained there should be GST am I right sir 100% the GST on the uh constructed property sold correct yes so let us say I'm selling these Flats correct so if I'm selling Flats flat becomes my constructed property and if I get booking of these Flats 100% let us say there is a scheme of 50 flats and all these Flats have a booking before completion certificate then GST is applicable on all the 50 Flats correct go ahead now okay now what would be the who will pay GST and uh uh and what is see there is something called the landowner give the service of transferring the development rights and the Builder pass transfers the buildings to not transfer he has agreed to sell these plots to the buyer correct so there will be two gsts like like correct correct right the land owner should charge the GST to the Builder and builder in turn will charge the GST to the buyer correct am I now see now see you are 100% right just one point I would like to add in this as you have pointed out I have opened that entry also which would be visible on the screen this entry is providing exemption right yeah so it is providing exemption for what it is providing exemption for this TDR only so in your example you rightly pointed out there are two transactions one is transfer of TDR by the land owner correct yes and the second transaction is sale of the constructed property that is Flats by the Builder correct corre correct now in this example there is exemption that is what is this entry dealing with there is exemption for the transfer of this TDR by the landowner if your entire flats are sold out before comp completion as you can see so in our example there are 50 Flats if entire 50 flats are sold out before completion then only the Builder is the person who is paying tax on the sale of flats there is exemption on the TDR part of this particular case Okay so that means the uh what can I say uh the Builder will give the money to the land owner without uh any GST anyways Builder will never give GST to the land owner because try to recall RCM entry the same point is in RCM entry also that if let us say there is a tax that is if this does not happens the flats are not sold before completion and hence this exemption does not applies in effect there is a tax on the TDR in that case also the tax is not payable by the land owner it is payable by the Builder under RCM oh okay okay RCM correct correct even if there has to be a tax on the development rights it will be bor by the Builder only and it will be paid by the Builder under RC so the Builder never has to give the money to the land owner okay so in this case because it is booking is already done for all the flights so there it is exempt from GST correct okay what about the buyer side when the because the CL sale agreement is already done that means booking mean sale agreement has already been done so during that what is that in the sale agreement will that be gstb a component okay now see the sale agreement is for sale of flats correct exemption is not for sale of fls exemption is only for the TDR which is between land owner and the Builder correct okay okay okay so that is exam but the second part that is between Builder and the customer which is of the flat okay there is always be GST of 1% or 5% depending upon the nature of flag right right so that means uh the Builder will get all the ITC for all his M building materials and all that again don't mix see for residential projects okay where the rate is 1% and 5% there is a blocking of ITC ITC is allowed only for commercial projects okay okay okay that is again important residential projects ITC is not allowed right and what what would be the charge of GST sir when uh the land on Builder sells the clots to the buyer 1% 5% oh okay okay if it is Affordable house it is 1% if it is not affordable house then it is 5% okay now if it is 50% is booked what will happen now for 50% uh let us not take 50 let us take 60 correct okay okay so out of 50 Flats 30 are booked before completion right okay okay so for 30 Flats Builder is going to charge GST at the rate of 1% 5% to the buyer of the flat because it is before completion okay okay correct yes no no no doubts in this correct and what about TD ah so that's what I'm coming B that's what I'm coming let us go step by step okay out of 50 Flats 30 Flats sold yes during yeah during construction yes right now yes in this particular project what is the Builder going to give to the land owner because landowner has given TDR so what will Builder give to the land owner uh that say for example 10 Flats he gives for example so so in this case 30 Flats Builder has sold outside he's paying GST 10 Flats which is he which he is going to give to the land owner on that also he will charge GST because it is as good as selling the flats only like how he has sold 30 Flats to Outsider 10 Flats he has sold to the land owner correct okay okay now out of 60 Flats sorry 50 Flats 30 outside tax paid 10 to build land owner tax paid right and for balance 10 Flats yes this exemption will not apply because this exemption applies only when all the flats are sold before completion right okay okay for balance 10 Flats the Builder will pay tax of this TDR which will be under RCM so sir TDR value how it is determined the TDR the value will be the value will be for the total TDR correct yes we will find out the value now the total TDR is of 50 Flats because because for this particular line total construction is 50 Flats Okay so sir sir I have read somewhere that uh the value of the 50 flats and from that value the land cost will be deducted is am I right sir no beta for see we are mixing different things beta we have to first understand which taxability we are talking about if you're talking about TDR taxability TDR itself is land so how you'll deduct the land cost what you have read what you have read that you deduct the land cost that is for the sale of flats so when you are selling the flats the flat includes the land component also yes yes from the land from the flat value you deduct the land portion yes yes but when we are on the TDR valuation we don't do that oh okay okay okay so that means suppose the land value is 100 rupees out of that 30 no this 10 Flats which the Builder gives to the owner that 10 will be within that booking Peri within that construction Peri yes that is assumption because that is given outright now right from the start it he has given okay so the TDR value will be divided in 40 is to 10 am I right yes so only on the unsold flat portion that is the 10 Flats which are unsold we will find out the proportional TDR value and we'll pay the tax okay sir okay there is another value for that instead of finding out the value of TDR we can also find out the value of those 10 Flats at the time of completion okay and we can calculate this 1 % 5% on those 10 unsold flats that is another way of paying tax on the TDR oh okay okay okay and suppose that nothing is booked what will happen to that case same same rule applies now if out of 50 nothing is booked but 10 Flats anyways he's going to give to the land owner okay okay that will come with it is anyways taxable because it is uh sold right from the beginning okay okay and for balance 40 Flats which are of the land which of the Builder you will find out the proportionate value of TDR and you'll pay the tax oh that 1% 5% yeah means there are two values one is the proportionate value of TDR or you pay tax on the flat value at the rate of 1% 5% whichever is lower so generally this 1% 5% only is lower okay okay okay understood sir understood great should we proceed should we proceed students great so we have Mana we have mitali we have Jin we have himon great let us go ahead then now anybody any other questions on exemption part or any anything that is covered till now in GST if you have any questions or doubts let me know please now the topic that we are starting today as you can see on your screens is the topic of time of Supply now let us first understand what is the concept of time of Supply so we know Supply is our taxable event that is it is that particular transaction on which GST is attracted that is in very simple words Supply so Supply is the taxable event of GST it is a transaction on which GST is attracted GST is applicable but this transaction has many legs I'll explain what I mean by legs so let us take a very simple example as a chartered accountant you have hired me you are a private limited company or a public limited company you want your audit to be done by me in this particular transaction I say that okay the fees for this audit would be 2 lakhs 50% you have to pay Advance today today is 12th of December I will come and I will do audit in the month of let us say January it will go up to February the audit will take two months the audit will get completed in two months and in the month of March I will raise the invoice and somewhere in the month of April or May you'll make the balance payment now there is one single transac ction of audit but it has multiple legs legs means stages or multiple subparts what are these sub parts one is the actual transaction actual Supply which is the audit but the other legs are the invoicing that is the documentation which is prepared and the other leg is the payment so generally every transaction has three legs generally in case of goods there may be one more leg that is when the goods are actually delivered so different transactions may have different legs but minimum three legs are always there first leg is the documentation that is when invoicing is done when the records are prepared another leg is the payment when the payment is made it can be made before or after and the third leg is the actual performance of the supply now in my example my transaction of supply has having these legs which are spread over four five months starting from December something has happened in December that you have contracted with me we have entered into this audit assignment so there may be some formal agreement also which we both sign so we agree to perform this particular Supply where I'm the supplier you are the recipient also there is a or advanc payment then in the month of January February the actual services are perform that is another leg and the third leg happens in March where I raise the invoice after completion of audit and then balance leg is you complete the balance payment now what is time of Supply when this one transaction is there where we know the value is 2 lakhs on 2 lakhs 18% is the tax the question is out of all these months in which month the tax liability is payable in which month the liability triggers I'm using the word trigger because the transaction is having connect with five months starting from December and ending with April but exactly out of these five months in which month or months I have to go and pay the tax on this Supply transaction so there is Supply which is the first leg the other leg is the transaction being performed in these different legs which is represented by payment which is represented by performance of that activity and which is represented by the documentation now time of Supply basically tells you out of all these legs when does the liability to pay tax triggers so first understand the meaning concept idea of time of Supply so time of Supply is the triggering of your taxability so once you have made a supply there is a tax no doubt so tax is freezed liability is there but the question is timing due date let us say so by what or in which period my liability will crystallize will materialize and I will become liable to pay that is what is time of Supply so firstly have understood the meaning and concept of time of Supply the law says it is the point in time when the liability to pay tax arises and I have explain you why this question comes because a transaction has multiple legs and these legs may be spread in different months so as a supplier as a taxable person the biggest question which I face is which month my liability is arising out of all these months that is what is fixed that is what is decided by time of Supply so time of Supply chapter will help me understand that for this supply for this audit transaction when I should pay the tax in which month that is the main question answered by time of Supply so first have you understood this basic point because many times we we read time of Supply but uh we study time of Supply very theoretically so I'm first trying to give you the Practical aspect of why this provision is required in the law so that when we discuss the provisions it will be easy for you to understand now the provisions of time of Supply are given in section 12 and 13 of the cgst and the sgst act and as we all know we have been discussing this all provisions of cgst whichever are required to be applicable to igst they are applied by way of section 20 of the igst act so section 20 of the igst ACT is the connecting section which has given a list that for all these sections we are not providing anything in the igst act for all this you refer the cgst act so this is how the time of Supply Provisions given in the C GST act also becomes applicable to igst act that is this time of Supply applies to both intrastate and Interstate transactions both now this particular time of Supply is given in section 12 and 13 there is one more section 14 but it is slightly different we are going to discuss that also it is not exactly dealing with time of Supply but yes it also helps you decide he in which month and what tax liability you have to pay but 14 I'll keep it aside because it is not exactly time of Supply what it is we'll discuss when we complete time of Supply now there are some definitions Associated Enterprise document invoice Goods service see good service we all know there is no specific definition given of document and invoice it is very generic so document is defined as it includes written or printed record of any sort or it is electronic record as defined in this this section of Information Technology act similarly invoice or tax invoice means the invoice as per section 31 so anyways there is no specific definition good service we have already discussed in the starting chapters prescribe means prescribe by way of rules reverse charge we have already studied in the the chapter of Levy that reverse charge means where the liability shifted to the recipient supplier again we have studied in fact we discussed it in detail I think he had asked question for supplier because there was the amendment relating to Online Supply so that point and I think even Punam or uh Manali someone had also asked something relating to supplier so we had also discussed recipient so all these are related to the previous chapter so I'm not repeating them we have already covered them yes voucher is a new definition which is relevant over here but again for the time being I'll keep voucher a bit aside because again it is dealing with a very special concept I'll explain when we come to that now in this chapter we have to determine what we have to determine the mon which I'm saying tax period in which liability to pay will arise so this is what is time of Supply in my language so in my language what is time of Supply time of Supply is the month that is the tax period in which your liability to pay will arise that is in that month you have to go and pay the tax now this time of supply is divided into two sections as we saw anybody knows what is the difference between 12 and 13 see I'll show you as the heading says 12 is for time of supply of goods and now you can understand what would 13 be for 13 will be for time of supply of service okay so that is given below so 12 is time of supply of goods 13 is time of supply of service one second yeah so section 12 deals with the provisions for time of supply of goods 13 is time of supply of service okay now what are we going to study in this in this broadly we are going to study time of supply for different types of transaction what are they I call them as regular transactions we'll study time of Supply then second is we will study time of supply for continuous Supply transactions continuous supply of goods continuous supply of service then we will study time of supply for special transactions right for goods what are the special transactions the special transaction for goods is Goods sent on approval and for service it is cessation of service see so we have regular transactions of goods and service we have continuous supply of goods and service and then then we have special transactions of goods and service okay now besides this now all this are forward charge transactions that is where tax is to be paid by the supplier then similarly we have the next time of Supply provision which is for reverse charge transactions that is where tax has to be paid by the recipient so we have the time of Supply Provisions for reverse charge transaction of goods and services then we have time of supply for voucher then we have time of supply for interest for delayed payment and we have time of supply for residuary again good service good service good service so your entire section 12 and 13 is divided into subsections because it has to cater to so many different set of transactions so first three are for forward charge this one is for reverse charge and these are all some very specific case scenarios like Supply through vouchers where there is late payment of interest and residu all this we'll be studying now I hope the broad overview of this chapter is clear to everyone once you have asked sir I have old study material April 23 Edition I have taken a print out of circulars which are issued and the budget memorandum explains the amendments in GST Customs do I need to buy see Mana if it is indirect tax I generally suggest it is better you buy you know why because for indirect access the circulars notifications are multiple and they have impact in different Chapters at the same time you may have taken out printouts or downloaded but you need also to mark them at the relevant places instead I personally will suggest at least for indirect access it is always better to buy bu the new module or we have everything uploaded on our portal you can download the new module right and refer it or take a print out of that so that is always a recommended thing instead of taking the old module and making uh the changes or marking the changes because in GST that is in indirect access there is Hell lot of amendments and changes so it is always better that you go by the updated module our modules are the most comprehensive and the most perfect source so you can very well comfortably instead of taking the hassles of doing it by [Music] yourself sir yes better go ahead please tell me sir uh in module of module related to 2025 uh the voucher definition is not given module of 25 Which chapter bet yeah time of supply sir 25 I have AIT of downloading the latest chapters immediately before the lecture in fact today when I was searching the portal I did not find uh uh this chapter in the 25 module you found it no sir [Music] I'm amazed to know this as far as I know at least I refer the BOS portal only so even if it is there it may be there I don't know I download everything from the B portal they may upload it later till then you can always refer the May one see the 2021 241 because when there is no major Amendment there is no need to even revise but still the latest one may be uploaded here but anyways voucher definition I don't know why it is not there but it is required ofly of [Music] Supply 100% I don't know which module you are referring voucher definition so recipient any time of supply of goods Point number three section 12 5.7 page number I don't know what you are referring to but it will be there so that is not a big thing Arrangement change okay sir don't worry for that okay sir yes sir yes sir maybe in between I may have to switch off my video I have many people uh roaming around so beach beach I may be just switching off the video for a few seconds okay so with this broad overview let us uh move ahead so we first start with time of Supply arrange maybe later on you can take a screenshot of all this so that it you can even again draw it at your end so that it will be easy for you for future reference so first we are going to discuss time of supply of goods and we are discussing forward charge so the three cases I'm going to to cover in this so here let us make it in a tabular form so it is particulars first are the regular transactions what are regular which are not falling in the other two then second is the continuous supply of goods and the other is the special transaction which is Goods on approval basis so where goods are sold on approval basis now as I was saying there are three legs to every transaction one leg is the actual Supply the other leg is the documentation and the third leg is the payment so I'll write down all the three legs now what is the rule what will be time of supply of goods time of supply of goods is earliest of first is date of invoice or CH I I'll use the word documentation so it is date of invo then second is as I said the supply itself so Supply now how do you come to know what is the date of Supply see we want the dates so that we can find out out of these dates which date is my time of Supply the answer is already given the answer is earliest of these dates but what are these dates we have to take earliest first is the documentation date what is the date the date of your invoice second is the supply date now how do we identify Supply so they are saying take the date of delivery that is the date when you have delivered the goods delivery dispatch removal whatever words you can use so the day when the goods are given by the supplier to the recipient or dispatched or removed and the third is date of receipt of payment this is is not applicable for transaction of supply of goods which are under forward charge so this third date as I said there are three LS in every transaction one is the documentation one is the payment one is the actual transaction so this is documentation this is the transaction this is the payment out of this for goods we will not refer to the date of payment in other words for all the regular transactions of supply of goods the time of Supply will be earliest of the date on which you have prepared the invoice or the date on which the transaction of supply has happened and how that transaction of supply of goods can be identified they are saying date of delivery dispatch removal etc etc there will definitely be some date of payment but for transaction forward forward charge transaction of supply of goods you will not refer to the date of payment I hope this is clear anybody has any doubts students please respond sir the date of invoice should be always earlier to the date of delivery my understanding is see what you are saying is right but that is what you are saying as per section 31 now 31 is what that is in another chapter that deals with invoice we are going to see that also here now in that chapter which is another chapter dealing with all types of Records in that chapter for invoice the rules are given that for goods and for service for service they have given you 30 days to prepare invoice but for goods it is on or before delivery that is why see that is why this earlier of these two has a relevance because there is a possibility that the date of invoice may be prior to the date of delivery or it may happen that the invoice is prepared on the same date of delivery so it can be that invoice is a prior date invoice if the invoice is a prior date invoice then your time of Supply will be the date of invoice however if the invoice date is same like date of delivery then anything is date of uh anything is time of Supply because both dates are same now theoretically in the sum they may also give you that invoice is prepared off a later date see nobody stop ing you from preparing the invoice of a later date but what will happen if you prepare the invoice of a later date you are contravening provisions of section 31 so that will entail penalty right so that is the topic of invoicing chapter that what invoicing chapter tells you to do invoicing chapter has said that you should prepare invoice for goods on or before the delivery all these words delivery dispatch R I'm only using the word delivery now it may happen that in reality somebody has prepared the invoice late he was not aware so he prepared the invoice four five days after after delivery so practically in the sum also they may give you the date of invoice like let us say 5th of Jan but the date of delivery is 29th of December fine this is wrong but it is wrong from the perspective of the invoicing chapter and there would be penalty there would be some type of punishment as per the law for that but for the time being in this chapter of time of supply for us this is a situation which may come in reality and anyways we are is bothered because for us the answer is earliest so for me the answer would be the time of Supply would be 29th of December I hope this is understood better yes sir so what you are saying is correct but I have tried to explain you how you have to look at the transactions in reality right okay sir excuse me sir please go ahead uh there is a different date date of dispatch is different and date of delivery is different if both are given which what we taken date of simple answer earliest earliest so let us say for all this they have given different dates so anyways the law is earliest now so for us it is simple out of all the dates given you'll take the earliest are you getting my point yes sir perfect anybody any other [Music] questions correct se1 sorry1 yes you have to always check at your end [Applause] correct understand one thing see1 isct huh point is what point is in follow that is a mistake of 31 correct we are not bed what is the time of Supply which is technically wrong correct but that is not a concern with time of supply of H right so what I'm trying to tell you is of in question there is a marks for that also that we have write that ing to section 31 he do a default huh answer is no the following case you have to tell what is the time of Supply answer purely based on section 12 yes section consequences that is not our concern when we are answering time of Supply correct okay sir sir question however as the invoice should have been prepared on or before the date of delivery hence he has prepared the invoice in breach of section 31 line yes sir pointed question case am I required to inform them that they have done breach of section 31 answer is no if the question is very specific what is time of Supply correct yes sir clear still exib things are mixed up please it is a no harm at all okay sir I hope I've answered both of your questions yes sir yes great let us proceed because see Act is designed drafted in their language this is how we are interpreting the provisions so see we are firstly on the be act I always prefer reading the be act be Act correct interpretation and you have to develop that skill of reading from the bar and getting the correct interpretation fine let us proceed so what is given section 12 subsection one the liability to pay tax on Goods shall Arise at the time of Supply as determined in terms of provisions of this section it simply says ofly deter for transaction of goods simple now what is the time of supply for regular transactions secretly secretly that I'll explain see subsection that is as for Section subsection two what does subsection two says time of supply of goods shall be of the foll in fact the date of issue of invoice by the supper first date second date or the date on which he is required under section 31 to issue the invoice last on which required under 31 to issue the invoice actual date of invoice or last date by which so see see this is the beauty of Law and that is why I like law specially ACC very much but this is the beauty and this is how you are having demand in the industry people will have to come to experts like you so now let us see what it says what is heading of 31 now we are only going to read 31 to the extent it is relevant to this chapter so entire 31 we are not studying 31 says the tax invoice to the extent will be relevant to this time of Supply F A registered person supplying Goods taxable Goods shall before or at the time of invoice yeah at the time before your time removal or deliver remal you are supposed to issue a tax invoice showing the description etc etc actual date of invoice due date of invoice SE we are studying section 12 section 12 so both are given in 2A what actual date of invoice and even the last date by which invoice should be issued as per 31 or 31 remal as for 31 I hope this is clear yes clear I'm also giving you section number reference section number con so we are talking about section 12 we are referring to cgst act only so IGG is copy past of cgst so we are referring cgst section 12 2 a 2 a 2B now we come back to the act so what was to a actual date of invoice yeah or last date inv as per 31 which is the delivery dispatch removal Etc the date on which the supplier receives payment are to every transaction one is dat of actual Supply delivery removal document which is invoice payment you will see there is a note given in point two what is a note practically in case of goods the date of receipt of payment by supplier is no longer this is important is no longer a Criterion for determining time of Supply or payment of tax why you have to refer analysis there was a notification you can see the date notification number 66 obl 2017 dated 15th of November this notification says ignore so notification tax payable at the time of receipt of advance for the supply of goods receipt so I hope this is clear to all why did I say it is not applicable CT means Central tax cgst notific is this clear so notification number 66 2017 so as per notification number 66 OB 2017 dated November H 15 November 2007 dated 15th November 2017 now see the beauty of the subject laws had to be which says earliest of dates actual invoice due date of invoice and date of payment m is notif the moment this I hope this is clear to all yes sir anybody having any doubts or questions good so in short notification the time of supply of goods for the purpose of payment of tax is the date of issue of invoice or the last date when the invoice ought to have been issued under 31 this is the final conclusion of the notification correct take so we go back to the law we got our first answer answer regular transaction corre because of the notific Prov applicable because this provis also deals with payment but if the payment itself is not applicable explanation to important because again it deals with payment so in short sectional section what is applicable is only explanation one I hope this is clear so effectively that is section 2 sorry section 12 subsection toic to payment explanation one it has not much bearing directly indirectly payment sing right just what is explanation one saying it says for the purpose of clause A and B the supply shall be deemed to have been made to the extent it is covered by the invoice point so effectively time of Supply only section 12 subsection 2 Clause a clause whichever is earlier I hope I'm clear with this anybody has any questions or doubts no sir clear sir excellent I also feel that talking to live people so keep discussing yes sir no sir now we have understood regular transaction right now I have to explain you continous supply of goodsa time of Supply or Goods on approval time of Supply answer date of invoice WAP due date of invoice as per 31 or payment is apply so same answer now what is going to change in all three is only this second part which is the due date of invoice of due of invoice ofy this is as per section 31 bracket one right so section 31 which was dealing with invoice subsection one which is for regular transaction when we proceed you'll find another subsection for continuous Supply and you'll find another sub subsection for where goods are sent on approval basis basically continuous or good sent on approval in transaction differentiation because of the invoice section which is 31 bracket one for this 31 bracket 4 for this and 31 bracket 7 for this to interestingly section 12 section that is section 12 subsection two and date or due date as per 31 31 you find three categories of transaction normal or to continous supply and goods on approval basis correct how we have constructed this whole provision try to understand so because of 31 reference we are having three categories section 12section that is covering forward charge for forward charge there is only one subsection 12 bracket two categories because of 31 31 categories are regular continuous and goods on approval basis now we go to 31 to understand what are the special cases due dates for raising invoice I first start with 317 which is easy 317 not withstanding anything contained in subsection one regular transaction section one was date of removal date of delivery we have to see where the goods are being sent or taken on approval of sale or return basis are removed before the supply takes place main point important the invoice shall be issued before or at the time of Supply or six months from the date of removal whichever is earlier so 31 timeline invoice B where goods are sent on approval basis timeline timeline is 6 months from date of removal or delivery yeah [Music] confirmation by the buyer now understand this 1 21 of preparing the invo latest latests are on approval basis transaction today is 12th of December but condition I will dispatch the goods you will receive the goods you will check the parcel if you find that the parcel is appropriate as per your requirement you will accept it or else you will reject it I said fine so today I am delivering the goods dat 12th of December relevance relevance because this transaction is not regular regular that is date of delivery or dispatch but dat transaction on appr basis in such a case the relevant date is time the so from today six months would be January February March April May June so it will end on 11e this date will be 11th of June correct but 11 answer so I have dispatched the goods today 25th 26th of December let us say it is some dress material it is some wearing app and on 5th of January you give me a confirmation by mail yes the goods are as per your quality as per your requirement you accept the goods to confirmation date 5th of J 11 of June sale complete but let us say see this is purely dependent on the person who is making the document second possibility this can be any date correct dat that is aach of 31 time of Supply so let us say for example purposes the three dates are confirmation 5th of Jan 6 months 11th of June because today is the date of delivery say six months complete 11th of June and the date on which invoice is prepared is 12th of to my final answer will be time of Supply 5th of J payment because it is now not applicable because of this same notification I hope this entire case scenario is clear to everyone anybody has any questions in this let me know like in Amazon app and there is a 7 Day return policy or 15-day return policy so if good good are not returned then after 15 they that automatically see if you are not returning it means it is deemed acceptance then date is the last date of that that is when the 15 days will expire that will become by default the date of confirmation yeah okay yes fine everybody has understood anybody any further questions on this CH Now we move on to the third category that is continuous Supply now let us first understand what is continuous supply of goods theoretically we have seen many examples but we need to understand it practically so that we can understand what the provisions are made so let me give you a practical example and I will even take you to the definition of continuous supply of goods now what is continuous Supply I'll give you the most simplest and the day-to-day example that is of grocery shop this transaction can be either regular also this transaction can either be continuous also so there can be regular transaction of supply of goods in case of grocery there can be continuous transaction of supply of goods in case of grocery both can be possible how let us understand so that we can understand the difference now see I'm sure at least daily once or latest within two days once you would be visiting the grocery shop near your house it may be by either for buying vegetables or for buying some Masala or some tea powder or milk or Cur or eggs or bread anything means as if grocery shop is our regular uh adaa we keep on visiting there many times we visit two or three times in a day when Mama says that okay get this get this get this now the transaction for grocery shop can be either of the two regular also continuous also how I'll explain see it can also be approval basis but we are not getting into that because we have concluded that now when it is a regular transaction and when it is a continuous we need to understand so that we understand ke what is so different about continuous supply of goods transaction now generally what is happening generally is this you go to the grocery shop you give them your list the person gives you the goods you make the payment he makes the invoice matter is closed even if you go twice a day every time he does the billing then it is a regular transaction means it is completed there and there itself right then comes the second case in some cases we have made some understanding with the grocery fellow so your mama had visited that person so your mama discusses with him we enter into a 15 days type of understanding what is this understanding he from 1 to 15 of every month and then from 16 to 30th of every month list you keep on giving the goods to that person you give the goods you make a noting you give the goods you make a noting and after the completion of 15 days I will come on the 15th or 16th or 17 and we will do the whatever and whatever is the final bill I will clear so for the first 15 days the bill is 2400 similarly again for next 15 days the same process is repeated again whoever is coming from family with a list or maybe at times on phone your mama calls up and tells him he keeps the goods ready and somebody from your house going picks up the goods again he is giving you the goods again Mama visits him on 30th or first or second whenever she gets time and again they do theab pr up and whatever is the amount they finalize and you pay now the same transaction with the grocery shop same transaction can be regular supply of goods or can be continuous supply of goods depending upon when you are doing the hisab now if the hisab is done immediately every time it is regular Supply just one second e sorry now this regular and the same transaction could be continuous depending upon when you are doing the hisab now this is the real life and the most simplest case study of what is a continuous supply of goods see I have not taken to the definition definition is theoretical but what fits in the definition once you have a real life example then reading the definition will be simple and makan yes anybody has any doubts with this anybody has any questions what is the meaning of continuous Supply what is the difference between continuous Supply and regular Supply or continuous Supply and goods sent on approval basis Mana has said uh sir before Supply takes place it means before issuing an invoice right but where this word is there before Supply takes place you're referring to what point bet Mana before Supply takes place which part you are referring to where have they given definition of continuous H H so this is the definition okay now let us go to the definition of continous supply of goods so continous supply of goods how it is defined continous supply of goods is supplying the goods fine provided or agreed to be provided continuously or on recurring basis now see the example which I have given where you are regularly going to that shop and you are regularly taking the goods so where the goods are supplied on a continuous on a recurring basis under a contract now this is what is important as I said Mama had visited the person and had discussed and they had finalized that okay we will do this every 15 days Gap so this is an understanding this is a contract contract may be written it may be oral in this example it is oral in all the corporate sectors Whenever there is continous Supply it is always written so where the goods are being supplied on recurring basis and it is under a contract and for which the supplier issues invoice to the recipient on a regular or periodic basis and what is this periodicity in my example it is every 15 days and includes supply of goods as the government May subject to conditions notify so nothing is notified so we can ignore that part what is important is this so goods are supplied on recurring basis it is done under a contract that is under some understanding between both the parties and supplier issues the invoice on a regular or periodic basis this is what is the definition of continous supply Now link it with what we just studied you understand what we are talking about correct any questions about the definition of continous supply or the meaning of continous Supply have you understood what does continous Supply means continous supply of goods okay so if this is clear now we come to the time of uh the due date by which invoice should be prepared in case of of continous supply of goods where successive statement of accounts now what is this successive statement of accounts in my words hisab so periodically you do theab that is what is successive statement of accounts are involved the invoice shall be issued before or at the time each such statement is issued or as the case may be each such payment is received so if I have to write it here what is the due date by which I'm supposed to prepare the invoice it is the date of successive account so in my example it is after every 15 days so mother goes to that shopkeeper on 15th or 16th or 17th that is the date of hisab that is this date or the date of successive payments now what is this it may happen that he may say by I am going to supply you goods for 15 days but you will make me payment after 15 days or 16 days so so you do one thing you also make me successive payments so mother says okay fine after every 5 days Gap whenever somebody's coming they will make you some round figure payment so we don't know exactly how much will be the payment because the hisab will be done at the end so we will make some round figure payment of let us say 500 rupees so this is the successive payment which is decided so in the first 15 days on one side he is continuously supplying you Goods so whoever goes every time goes he's going to give you the goods that is the continuous supplying the goods and at the at the same time you may agree that you may also be making some successive payments what is the successive payment so in this example after every 5 days we will give him lumpsum 500 and and then when the hisab is done so for the first 15 days what is the hisab hisab is of 2400 so from that we will subtract this 1500 because that was the payment we already made on three dates so balance 900 Mommy will pay at the time of doing this hisab similarly for the next 15 days again we would have made this payment on the next 5 five days Gap so now the hisab will be done we would have already paid him500 in that gap of 15 days so again now mama will pay balance 1500 so this is how continuous Supply happens and in that particular case the time of Supply is earliest of these three days so there is some question Mana says sir before Supply takes place and I ask you are saying 317 okay I'll come to 317 because it is uh AA 317 before Supply takes place better when does the supply takes place Supply takes place when he gives you confirmation so that is why here I have written confirmation by the buyer so this is what is the date of Supply so when Supply concludes when he gives confirmation so that is what is that point man fine okay students so what is finally the time of Supply in case of continous supply of goods it is earliest of 3 dayses actual date of invoice which in my case will happen when this particular thing happens that is Mama goes for doing the final hisab and it would be the second date is date of successive accounts which will again happen at that time only or the date of success payments which in my example are three days where 5500 is given so out of this whichever is earlier this is the time of Supply in case of continuous supply of goods did you get this sir the uh in this the date of successive payment is always earlier now see this is my example it can be anything it is ultimately contract yes so in contract you will decide when to do what you may give the payment at the start also lumpsum payment of yes sir 1500 so that is also possible you may give successive payment after every 5 days you may give payment after 15 days so there are so many and number of possibilities see it is a part of a contract contract can be anything between you and right uh but sir uh in this example also but so dat of inv yes sir yes sir yes sir so then there would be definitely a document will beiver for giving the goods which is a proof goods and whenever the payment will flow there will be some payment advice there would be some receipt given for payment level right yes sir we need to First understand what is in Practical scenario concept of continuous Supply so this is the example correct sir when 500 is given for the first time on fifth of the month month what all items will come in the invoice firstly for that 500 you have to give a receipt voucher because that 500 is a lumpsum payment we don't know what is the final uh this correct so in that particular case you will be not giving an invoice you will be giving a receipt voucher okay okay we go to this chapter now see the chapter of this records and documents where we are going to study invoice in that chapter only we are going to study one more document which is the receipt voucher okay sir okay sir because your your question is very valid when you have given this lumpsum 500 rupees on Fifth Maybe by that day the supply may not have even started or the supply may have been of 800 900 but that we don't know because he has not done the hisab he will be doing hisab of 15 days at the end yes so it is like it is like an advance so whenever there is Advance the chapter of document says you have to give a receipt voucher oh okay sir okay sir understood actually my uh my question also just like him uh just receip receipt [Music] voucher yes beta the date is exactly correct correct yes sir so you can advance is uh if Advance is more than in a case lumsum pment is for one month so then what what is the effect of that see if it is part of successive payment which is written in the law right yes sir in case of continous supply of goods where successive payments of accounts or successive uh payments are involved the invoice shall be issued before or at the time of such statement is issued or as the case maybe each payment is received right now in this particular case they are saying either where successive statement of accounts or successive payments are involved it means both are not there the question is what if both are there practically the invoice is always issued only when hisab is done because hon rightly pointed out what I will write in the invoice for the goods because where I've not done hisab I will not write anything for the goods so in that particular case for successive payments what you give is the receipt voucher because in receipt voucher you only have to write the amount because we are showing it as advaned payment received right and then when the final hisab will be done at that time we have made a list of goods whatever are supplied during those 15 days in in that case the detailed invoice will be prepared for all the goods which are supplied in the 15 days period I hope this is clear to all yes students fly underst underst H mitali tell me yeah sir time of Supply early correct correct correct let's take example let's take January inv GST first month successive payment practically am I clear yes sir you prepare the other document which is receipt voucher okay correct and on that basis time of Supply trigger date of successive payment rech ofly okay sir correct invoice am I clear Mani CH so if anybody wants to take a screenshot of this please take a screenshot of this whole thing so that you'll have it for your reference yes one second yes now you can take the screenshot perfect now let us move on now section 12 but I want to give you a comparative study so we we switch to section 13 which is same time of Supply but now it is of services and again it is for forward charge right again there are three transactions one is regular continuous and special transaction is sensation of service take okay now same like section 12 13 subsection one the liability to pay tax on Services shall Arise at the time of Supply as determined in terms of the provision ofly now what does subsection two says the time of Supply shall be earliest of following dates PA date of issue of invoice by the supplier if the invoice is issued within the prescribed period under 31 or the date of receipt of payment whichever is earlier second the date of provision of service if the invoice is not issued within the period prescribed in 31 or the date of payment whichever is earlier and third the date on which recipient shows the receipt of services in the books in case provision of A and B does not apply now we have regular transaction we have continuous Supply we have cessation for regular Transaction what you have to check you have to check whether invoice is prepared within the time limit now what is the time limit given in section 31 31 says time limit has 30 days and for some cases it is 45 days time limit whether invoice is prepared within the time limit the possibility yes or no 30 days inv yes 30 days inv no no 30 days if answer is yes to what is time of Supply time of Supply is date of invoice or date of receipt of payment answer always is whichever is earlier to is earliest of to main rule it is earliest of these dates understand the logic your invoice is a valid document since it is valid docent second if you have not prepared the invoice within time limit to your invoice is now not a valid document of provision of service service provide date of receipt of payment in dates say whichever is earliest is your time of Supply this is the regular provision all this we are studying is as per section 13 bracket 2 this is as per 132 a this is as per 13 to B 132 a 13 to b sir date of provision of service what would be the the document to for for the authentication of this I'll tell you good question so Imon wants to know sir what is the date of provision of service how do you get the guarantee of what is the date so answer is it depends upon what is the service so I'll give you few examples let us say the service is a hotel service so it becomes a date of your state second if it is a transport service it is the date of your travel if it is is audit service it is the date of signing of audit report so for different Services there would be different dates and as you rightly pointed out what is the document for authentication so as I gave you example there could be different types of instead of using the word document I'll say evidences by which you will get the answer of what is my correct date of provision of service correct understood bet yes sir yeah yes sir understood have others understood this yes sir anybody else has any questions on this sir I have told yes clear confidence okay yes what about others VES Punam mitali mansha everybody is clear sir the data provision of service it should be from the recipient right that that is the date on which the recipient receives the service and document has come from yes the document has to come from the recipient am I right sir see again I'll repeat my point better there may not be a document like when you are traveling what is a document so it is as I said you have to see the evidences so for traveling what I said it is the date of travel now that you will get to know from the ticket date or from any such evidences you'll come to know what is the date of travel correct so there may not be necessarily every time any document as such I'm using the word evidence because when we say document it means something is prepared like how you prepare an invoice so when you're are saying the document will come from recipient it means indirectly you want to say that recipient has to prepare and give something recipient cannot prepare and give anything in GST correct all documents in GST except two there are only two documents in GST where recipient has a role otherwise for all documents it is always the supplier now the point is here for the evidence of provision of service recipient will not give you any document that you will understand from the various evidences as I said now for different Services there would be different evidence now for example I gave you example of audit service now here what document recipient is giving he's giving no document the audit report is signed by me but the date of signing of audit report can be taken as the date of provision of service so again it becomes an Evidence he when did I provide the service it is the date when I completed the audit and I prepared audit rep so here there is no document coming from recipient understood sir understood sir sir servic there is nothing like profor invoice in GST whether it is for goods or whether it is for service but uh any before selling uh someone um send to the uh buyer but that is see that is part of business practice GST document nowhere in the GST law that document has been referred provision provision of service related actually understood what is the link that you trying to establish GST okay sir per right okay sir yes sir okay now we come back to 31 31 time limit document days that is given in 31 only it is coming from section 31 only a registered person supplying taxable service shall before or after the provision of service but within a prescri period 31s prescribed the prescri perod describe rules so you go to the rules and when you come to the rules you find the 30 days rule so rule 47 invoice referred to in 46 in case of taxable supply of service shall be issued within the period of 30 days from the date of supply of service or 30 days rule 45 days 45 days provided that where the supplier is insurer insur fin then instead of invoice the document that they are going to prepare whatever document that they are going to prepare the time limit given is 45 days so the time limit there are two time limits 30 days 45 days it is coming by way of rule 47 and we are reading rule 47 because of section 31 bracket 2 which uses word prescribed period so 30 days 45 days section 31 read with rule 47 so this is how you get this particular reference correct and then we refer to our original section which is 132 which says time limit inv section number correct fine then we come to continuous supply of service continuous supply of service time of Supply is earliest of two dates 312 312 date date of invoice PA date D date date of receiving payment ofing service service so again there are section 315 says subject to the provisions of clause D of subsection 3 in case of continuous supply of service to continuous so payment is linked with event it is completion of event dat date due date of payment fixed so answer head due date or no due date fixed to actual date of payment in section 31 bracket 5 continous supply of service inv so 31 315 three scenarios are given invoice scenario one scenario 2 scenario 3 scenarios scenarios 1 2 three scenarios Ty supply of service so let me first take an example supply of service definition it is same like continous supply of goods under some agreement services are supplied continuously on a recurring basis important Point supply of service definition says what is supply of service months everything is same like Goods Goods service now the question isic Exon example this example is construction service I make this a box construction let us say you have booked a flat office shop which is under construction so building is under construction book what is that event so the payment is linked with an event supply of service Construction is the service the service is so you are getting the construction step by step in this particular case se1 15% so on every completion of event you will prepare the invoice so this first first rule applies to builders second rule second rule best example telephone services internet services calling oret there is always a due date which is fixed for payment every monthe fix so your invoice has to be prepared on or before the due date so answer it is the due date and third third possibility is Supply service ofec ofing me dat of actual so in so payment fix in that the date would be the actual date of payment fine so yeah for continuous supply of service what is the due date given for preparing invoice as per section 315 where due date of payment is ascertainable from the contract any due dat the invoice shall be issued on or before the due date second Point man where the due date of payment is notable third inv it shall be issued before or at the time when the supplier makes the payment or receiv receives the payment or first point where the payment is linked to completion of an event invoice shall be issued on or before the date of completion of that event so this is what is given in section 31 bracket 5 I hope this is clear to everyone so 312 regular supply of service 315 continu supply of service is this fine students yes great heavy let us take a 15 minutes break after that we come back and we go to the cation of service part and we go to the other time of Supply cases fine so 15 minutes break we start at 8:00 e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e okay so we are studying the time of supply of service in case of forward charge transactions and in 132 it says again if it is regular regular transaction we have to read it with 31 bracket 2 which says that the time limit for issuing invoice is 30 days from the date of provision of service and in case of insurance banking nbfcs it is 45 days if prepared within time time of Supply is earliest of two days if not prepared within time time of Supply is earliest of these two dates then we went to continuous supply of service where 132 says time of Supply is earliest of these three dates in which what is the due date for issuing invoice that is given in 31 pipe where there are three dates given depending upon the type of service and then comes the cessation of service case again dat of invo date of receiving payment now what is the due date for issuing invoice as per 31 for this let us first understand what is cessation so cessation means where you had contracted to provide a service but for some reason the service is stopped in between the service contract is terminated it is seized seize means to stop to terminate so where the service contract is terminated in between it becomes cessation of service now there are very famous examples if I'm not wrong uh uh of some celebrity uh who was Miss [Music] uh world sushmita s so there is a famous case of susmita s where she had been on some shooting but in between she cancelled the shoot so there are multiple such examples where let us say you hire me for doing your compliance work it is supposed to be for the 12 months however after 4 months I'm not happy with the way the company is responding so I say okay Baba even though our original contract was for 12 months I'm seizing this I'm stopping this after 4 months I will not be doing this service so that is cessation of service right now for this one is the date of invoice the other is the date of receiving payment now the question is what is the last date by which the invoice should have been prepared so it is simply in case where the supply of service seizes under a contract before the completion the invoice shall be issued at the time when the supply seizes so it is simply the date of cessation so the date on which I decide to cancel this contract to stop my service that date now here what is also important is the value the value is to the extent of service provided so my main value may be rupees 10 lakhs but that was for whole year if I have given you service only for part of the Year let us say in my example for four months so I will proportionate the value and only to the extent to which I have provided Services till that extent only I will raise the invoice so one is what is the date for raising invoice it is the date when the supply seizes and what is the value the invoice shall be issued to the extent of the supply made before such cessation so till the date of cessation whatever is the Quantum of Supply made to that extent only the V invoice would be made so this is what is provided for continuous supply of service so this is what is given in section 31 so 316 gives the time limit for cessation of service so again we have three scenarios for time of supply of service also again we are dealing with only forward charge so for forward charge 132 applies it says the dates for time of Supply will be earliest for these two it is earliest of three dates date of invoice due date as per 31 and the date of receiving payment but for this regular transaction it will be depending upon two case scenarios I hope everything up to this point is clear because there is still something left in this section 132 before that I hope all the case scenarios are understood now we have this date of payment which is there in all which was not applicable in case of goods but it is applicable in case of service now the question is what is this date of receiving payment it is date of entry in books of account of supplier or it is date of credit in Bank of supplier so what will be considered as the date of receiving payment it will be one of these dates now again if both dates are there obviously both dates are there then which date anyways our rule is whichever is early so first is the date on which the supplier has shown the entry in his books so you have you prepare books of accounts we pass the entry for receiving the payment so it is the date on which the entry is passed second where let us say nowadays people directly transfer to your account through rtgs nft or online transfer it is the date on which the amount is credited in your bank account so this is considered as the date of receiving payment now see this is given by way of so this is 31 2 soor sorry 132 and in this this is given by way of explanation so we had similar explanation even in case of supply of goods but we ignored that because date of payment was not relevant here it is relevant so what is the explanation saying the date of receipt of payment shall be the date on