EFFECTIVE TIME OF SUPPLY UNDER GOODS AND SERVICE TAX ACT

Time play most important role in any type of tax applicability in the case of services or in the case of goods too. On the basis of time the person is able to determine the tax liabilities of the specified transaction. When the time or date specify in relation of the goods or services supply then after the taxability will be determine whether it is related to direct tax or related to indirect tax or what is the time of supply for the specified transaction. Goods and service tax is an Indirect tax and in Goods and service tax act time of supply also play the most important role to determine the tax liabilities As per the time and date of supply taxability will be determine under the goods and service tax act, means tax under SGST or tax under CGST or tax under IGST and its also depend upon the category of goods too. But the time of supply is also play the most important role for determination the taxability of the transaction whether it is related to goods or it is related to services. In respect of goods and service tax act there are two types of classification for tax liabilities i.e. one is for Goods (means Sale and Purchase transaction) and the second is for Services.