If the tax invoice is issued by supplier within 21 days from the date of goods delivered or services performed and no payment is made since then, the date of invoice will be considered as Time of Supply.
However, if the tax invoice is not issued within 21 days from the date of goods delivered or services performed, then the Time of Supply will have to fall back to the date of delivery.
Assumption: Both above companies have their GST Submission Period from January to March (3 months) & from April to June (3 months).
CASE 1: Company A has received tax invoice from supplier on 15 April with tax invoice date the same. Company A can claim Input Tax Credit for the period from Apr to Jun.
CASE 2: Company B has only received tax invoice from supplier on 28 April with tax invoice date the same. Company B must report & claim Input Tax Credit for the period from Jan to Mar!
TIME BOMB IN GST
Since Company B received the tax invoice after 21 days, the date of goods delivered will be the TIME OF SUPPLY in this case.
If Company B has already submitted GST Return for the period from Jan to Mar to Customs Department without reporting the above tax invoice, it means Company B has reported the Tax Return INCORRECTLY due to late invoice issued by the supplier.
Worse still, Company B can NOT claim the Input Tax Credit of the above tax invoice for the period from Apr to Jun.
Options for Company B: Not to claim Input Tax Credit of the late tax invoice OR submit Revised GST Return and get fine!