Guides · GST
Time of supply under GST
The time of supply is the moment GST law treats a supply as having happened, and so the point the tax becomes payable. It decides which tax period a transaction belongs to — and therefore which return it goes in.
How the time of supply is fixed
For goods and for services, the time of supply is generally tied to the earlier of specific events the law lists — such as the date of the invoice, the last date by which the invoice should have been issued, or the date of payment, depending on the case. Reverse-charge supplies have their own timing rules.
The idea is to fix a single point in time so the tax cannot be delayed indefinitely by holding back an invoice or a payment.
Why it matters
The time of supply decides the tax period a supply falls into, which affects when the tax is reported and paid. A supply pushed into the wrong period throws off the return for both periods.
It also interacts with advances: receiving money before a supply can trigger the timing rules, which is why advances need care.
How Lekha keeps the dates
Lekha records each invoice and payment with its date, so the dates that decide the time of supply are captured rather than reconstructed later.
Lekha records what your documents say and tracks the money on both sides — what you owe and what you are owed. It records and tracks; it does not replace your accountant.
Questions
- What is the time of supply under GST?
- It is the point the law treats a supply as made, and so when GST becomes payable. It is generally tied to the earlier of specific events like the invoice date or the payment date.
- Why does the time of supply matter?
- It fixes the tax period a supply belongs to, which decides when the tax is reported and paid. Getting it wrong misstates the return for the periods involved.
- Does receiving an advance affect the time of supply?
- It can. Receiving payment before a supply can trigger the timing rules, which is why advances are handled carefully under GST.
This guide is general information, not legal or tax advice. Confirm the current rules and your own circumstances for any specific case.