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(1) The liability to pay CGST / SGST on the goods shall arise at the time of supply as
determined in terms of the provisions of this section.

(2) The time of supply of goods shall be the earliest of the following dates, namely,-

(a) (i) the date on which the goods are removed by the supplier for supply to the
recipient, in a case where the goods are required to be removed or
(ii) the date on which the goods are made available to the recipient, in a case where the
goods are not required to be removed; or
(b) the date on which the supplier issues the invoice with respect to the supply; or
(c) the date on which the supplier receives the payment with respect to the supply; or
(d) the date on which the recipient shows the receipt of the goods in his books of
account.

Explanation 1.- The provisions of sub-clause (ii) of clause (a) shall apply in cases where
the goods

(a) are physically not capable of being moved; or
(b) are supplied in assembled or installed form; or
(c) are supplied by the supplier to his agent or his principal.

Explanation 2.- For the purposes of sub-clause (ii) of clause (a), the expression ’made
available to the recipient’ shall mean when the goods are placed at the disposal of the
recipient.

Explanation 3.- For the purposes of clauses (b) and (c) of sub-section (2), the supply
shall be deemed to have been made to the extent it is covered by the invoice or, as the
case may be, the payment.

Explanation 4.- For the purpose of clause (c) of sub-section (2), “the date on which the
supplier receives the payment” shall be the date on which the payment is entered in his
books of accounts or the date on which the payment is credited to his bank account,
whichever is earlier.

(3) In case of continuous supply of goods, where successive statements of accounts or
successive payments are involved, the time of supply shall be the date of expiry of the
period to which such successive statements of accounts or successive payments relate.
If there are no successive statements of account, the date of issue of the invoice (or any
other document) or the date of receipt of payment, whichever is earlier, shall be the
time of supply.

(4) For the purposes of sub section (3) above, the Central or a State Government may,
on the recommendation of the Council, specify, by notification, the supply of goods that
shall be treated as continuous supply of goods;

(5) In case of supplies in respect of which tax is paid or liable to be paid on reverse
charge basis, the time of supply shall be the earliest of the following dates, namely—

(a) the date of the receipt of goods, or

(b) the date on which the payment is made, or

(c) the date of receipt of invoice, or

(d) the date of debit in the books of accounts.

Explanation.- For the purpose of clause (b) of sub-section (5), “the date on which the
payment is made” shall be the date on which the payment is entered in the books of
accounts of the recipient or the date on which the payment is debited in his bank
account, whichever is earlier.

(6) If the goods (being sent or taken on approval or sale or return or similar terms) are
removed before it is known whether a supply will take place, the time of supply shall be
at the time when it becomes known that the supply has taken place or six months from
the date of removal, whichever is earlier.

(7) In case it is not possible to determine the time of supply under the provisions of subsection
(2), (3), (5) or (6), the time of supply shall

(a) in a case where a periodical return has to be filed, be the date on which such return
is to be filed, or

(b) in any other case, be the date on which the CGST/SGST is paid.