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Glossary

What is time of supply?

The date the law treats a supply as made, which decides the month the GST is due and, when rates change, the rate that applies.

Updated

In short

Time of supply is the point at which GST on a supply becomes payable. In SimpleERP the invoice date decides the month a sale lands in the sales register, so date each invoice correctly.

Time of supply is the point at which a supply is treated as made and GST on it becomes payable. For goods it is generally the date of the invoice, or the last date by which it should have been issued. For services it is generally the earlier of the invoice date and the payment date, if the invoice is issued on time. It decides the tax period and, when rates change, the rate.

Time of supply: a worked example

Lakshmi Steel Furnitures dispatches 10 steel racks 4 shelf to Ravi Stores on 29 September 2026, value ₹49,900 plus 18% GST of ₹8,982, total ₹58,882. The invoice is dated 29 September.

  • Time of supply: 29 September 2026, the invoice date for goods.
  • The ₹8,982 belongs in the September GSTR-1 and GSTR-3B, even if Ravi Stores pays in October.
  • Had the invoice been dated 2 October for goods that left on 29 September, the supply would still date from 29 September, the last day the invoice should have been issued.

Why did time of supply matter in September 2025?

GST rates on many items changed from 22 September 2025 under the GST 2.0 rationalisation. When a rate changes, the rate on a supply depends on when the goods or services were supplied, invoiced and paid for, under the change-in-rate rules as notified. An invoice dated on the wrong side of the date can carry the wrong rate. The GST rate changes guide covers what to update.

FAQ

Questions, answered

Is time of supply the same as the invoice date?

For goods it usually is, provided the invoice is issued no later than removal or delivery. For services it is the earlier of the invoice date and the payment date when the invoice is issued within the time allowed. Reverse charge supplies follow their own rules.

Do I pay GST on an advance for goods?

As notified since November 2017, a regular taxpayer does not pay GST on advances received for goods; tax is due at the invoice. Advances for services do attract GST when received. Check the current position on the GST portal or with your accountant.

What if I invoice late?

Late invoicing does not move the time of supply. For goods, tax is due from the date the invoice should have been issued, so a late invoice can mean late tax and interest. Raise the invoice when the goods leave.

Does time of supply decide the month in GSTR-1?

Time of supply does decide the GSTR-1 month. A supply belongs to the tax period in which its time of supply falls, and you report it in that period's GSTR-1 and pay the tax in that period's GSTR-3B. That is why the invoice date in your sales register matters.

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