Basics Time, Place and Value of Supply Under GST
                     Basics: Time, Place and Value of Supply Under 
GST
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The Goods and Services Tax (GST) regime has subsumed all the indirect taxes 
in the past few years of its successful implementation. However, the 
new tax calculation system has streamlined indirect taxes. The government 
has unified the current and previous tax systems by introducing “Supply 
Under GST” – Time, Place and Value of Supply. GST is classified into three 
types, namely, SGST, CGST and IGST. Taxpayers can apply GST charges on 
their e-invoices based on this classification. Under GST, “Supply” is primarily 
enforced by the government to help taxpayers determine whether a 
particular transaction falls under SGST and CGST (intra-state transactions) or 
IGST (inter-state transactions). The GST regime has established specific rules 
and provisions for determining the time, place and value of supply. This 
Comprehensive GST Guide is a key to understand the concept of “Supply” 
under GST. Being aware of the different supply types will enable you to issue 
GST compliant e-invoices and accurately file your GST annual returns. You 
can also use Imprezz
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What Is the Meaning of Supply Under GST?
As per the GST regime, Supply is an event under which taxes are charged. 
Any transaction of goods/services is considered as a supply by the 
government when an event meets the following criteria.
The supply must be of goods or services.
The supply must be taxable.
The supply must be made by the taxpayer.
The supply must take place within a taxable area.
The supply must be made in exchange for cash or reward.
The supply must be made in the course of business or in the interest of 
developing a business.
What Are the Types of Supply Under GST?
The supply of capital goods and services under GST is broadly classified into 
two main categories – Taxable Supplies and Non-Taxable Supplies. Further, it is 
classified into different sub-categories in accordance to the nature of supply.
1.   Taxable Supply
Goods and services supplied under GST are termed as taxable supplies. 
Registered taxpayers can claim Input Tax Credit (ITC) under GST on the 
purchase of taxable goods or services.
• Regular Taxable Supply
Supply of any goods and/or services that incur a GST rate higher than 
0% within India’s territories is termed as a regular taxable supply.
• Nil-Rated Supply
Supply of any goods and/or services that incur a 0% GST rate within 
India is termed as nil-rated supply.
• Zero-Rated Supply
Supply/Export made to an SEZ or consider deemed exports; applicable 
GST rate on these supplies is 0% (i.e., the rates applicable becomes 
zero) even though they incur a tax rate higher than 0% when sold 
within India. This category of supply is known as zero-rated supply.
2.   Non-Taxable Supply
The supply of goods and services that is not leviable under the GST Act 
is termed as non-taxable supply. Non-taxable supplies are either 
exempt goods or do not qualify to claim Input Tax Credit in GST.
• Exempt Supply
The supply of exempt items or services that do not incur GST charges 
despite being under the purview of Goods and Services Tax (GST) is 
termed as exempt supply. A registered person cannot claim ITC on 
inputs that fall under exempt supply.
• Non-GST Supply
Supplies that are not subject to GST; it refers to the supply of items that 
fall outside the purview of the GST law. Note: Sale of goods from a non-
taxable region to another without entering Indian provinces, stored 
goods sold to consumers before they pass clearance for consumption, 
and sale of goods related to foreign sales should not be considered as a 
Supply.
Components of Supply Under GST
Supply under GST is considered as a taxable event that helps determine 
and charge tax rates. The concept of supply can be divided into three 
sub-topics namely;
Time of Supply
It defines the moment when a particular transaction of goods or 
services are supplied. When a supplier is aware of the transaction time, 
it helps determine when the associated GST payment of tax and GST 
return filing are due to be paid.
Time of Supply of Goods
The time of supply of goods is considered the earliest of the following 
dates:
The date on which the invoice was issued.
The last date for issuing the invoice.
Date of the receipt issued on advance/payment.
Time of Supply of Services
The time of supply of services is considered the earliest of the following 
dates:
The date on which the invoice was issued.
Date of the receipt issued on advance/payment.
The date on which services were supplied (if the invoice was not issued 
within the prescribed time limit).
Place of Supply of Goods
Place of supply of goods usually means the place where the goods are 
sold or supplied; it is where the ownership of specific goods is changed 
in exchange for money or considerable reward. In case there is no 
movement of the goods, the goods’ location when delivered to the 
recipient is considered the place of supply. If the delivered goods 
require assembling and installation, the place of supply is where the 
installation is done.
Place of Supply of Services
In general, the place of supply of services under GST means the site 
where the services are sold or supplied. In case specific service is 
provided to an unregistered seller whose location cannot be tracked, the 
service provided area will be considered the place of provision for the 
supply of that service. The GST regime has set out some special 
provisions to determine the place of supply for the services mentioned 
below:
Services Related to Real Estate/Immovable Properties
Restaurant/Catering Services
Admission to Events
Transport of Passengers/Goods
Telecommunications Services
Banking/Insurance/Financial Services
Considering immovable properties, the provision for place of supply of 
service is the location of the property itself.
Value of Supply Under GST
Section 10 of CGST (Central Goods and Services Tax) Act 2017, defines 
the value of supply as the concept that evaluates the cost/price of the 
goods or services supplied. It is the final component that helps 
determine the applicable GST rates of an item or service. Valuation has 
a significant impact, as GST is collected based on the value of goods or 
services. Generally, under GST, for tax collection, the transaction value 
of a supply is taken as the bid’s actual value. However, here are some 
of the effective methods used to determine the value of a supply of 
goods/services.
Comparison Method
Computed Value Method
Residual Method
Conclusion
Time, place and value of supply are the three major components of the 
GST regime that determine which of the three GST rates (CGST, SGST 
and IGST) apply to the supply. Lack of understanding might lead to the 
issuance of incorrect invoices that might reflect on GST return filing. 
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