The time of supply fixes the point when liability to charge GST arises.
The time of supply in case of supply of goods shall be earlier of the following:
(1) Date of issue of invoice.
(2) Due Date of Issue of Invoice.
(3) Date on which suppliers receives payment.
The registered person shall issue the invoice before or at time of:
Removal of goods OR
Delivery of goods. [Section 31(1)]
The registered person shall issue the invoice for supply of goods on sale or return basis at time of:
Date of acceptance. OR
6 Months from date of removal.
The time of supply in case of supply of service shall be earlier of the following:
(1) Date of issue of invoice.
(2) Due Date of issue of invoice.
(3) Date on which supplier receives payment.
(4) Date on which supplier shows receipt of services in his books.
The registered person shall issue the invoice for supply of service before:
Provision of service. OR
30 Days from supply of services.
Value of supply shall be the transaction value where price is sole consideration and other certain elements.
The value of supply shall be the transaction value and following elements:
(1) Payment made to third party by recipient on behalf of supplier in relation to supply.
(2) All incidental expenses such as commission, packing charges, inspection charges, testing charges, etc.
(3) Any interest or late fee charged by supplier for delayed payment.
(4) Subsidies provided by entities other than Central Government and state government.
The following elements are required to be deducted from value of supply:
(1) Subsidies provided by Central Government and state government directly linked to supply.
(2) Discount given by supplier provided discount is shown in invoice.
Yes, supplier can deduct post sale discount from invoice after supply when all of the following conditions are fulfilled:
(1) Agreement regarding discount must exist at time of supply.
(2) Proportionate ITC must be reversed by recipient.
(3) The post-sale discount must be linked to invoice.
(4) Credit note must be issued by the supplier.