Finance Training classes Fees

GST – Time of Supply

Introduction

GST – Time of Supply: Point In time When the liability to pay tax arises

Who shall pay: Taxable Person

• On what GST shall be paid: Supply of Goods and services – Section 7

• When GST shall be paid: Point of Supp.ly

• Where shall GST be paid: Place of Supply

• To whom shall it be paid: Respective Government

• How to Pay: Cash / Credit

Time of Supply of Goods

Generally Earlier of
Date of issue of invoice or last date on which the invoice was required to be issued
Date of receipt of payment

In case of Reverse Charge

Earlier of
Date of receipt of goods
Date of payment
From the date of issue of the invoice Date immediately following 30 days.

Time of Supply

In case of Supply of vouchers
Date of issue of the voucher, if the supply is identifiable at that point
Date of redemption of the voucher, in all other cases

In case of receipt of additional value of supply in the form of
Residual
In the case where a periodical return has to be filed, the date on which such return is to be filed

In any other case,

the date on which CGST/SGST is paid

Time of Supply of Goods – Last date for issue of invoice

Last date of issue of invoice

Concerning the removal
Goods removed Date of removal
Goods are not removed Date on which goods are made available

The continuous supply of Services
statements of accounts or successive payments
Goods sent on approval
before or at the time of supply
Six months from the date of removal

Continuous Supply of Goods

Section 2(32) defines “continuous supply of goods” means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may, subject to such conditions, as it may, by notification, specify

Continuous Supply of Goods
Notification No. 40/2017 – Central Tax dt. Oct 13, 2017
registered person whose aggregate turnover in the preceding financial year did not exceed one crore and 5000000 rupees or the registered person whose aggregate turnover in the year in which such person has obtained registration is likely to be less than 15000000 rupees and who did not opt for the composition levy under section 10 of the said Act as the class of persons who shall pay the central tax on the outward supply of goods at the time of supply as specified in clause (a) of sub-section (2) of section 12 of the said Act including in the situations attracting the provisions of section 14 of the said Act,

Time of supply of services

In case invoice issued within the prescribed time, earlier of

ï?·the date of issue of an invoice by the supplier or
ï?·the date of receipt of payment

a)In case of the invoice is not issued within the prescribed time, earlier of
ï?·the date of provision of service
ï?·the date of receipt of payment

A continuous supply of Services

When due date of payment is ascertainable, on or before the due date of payment;
a.else, date of receipt of payment;

Where the payment is linked to the completion of an event, date of the end of that event.
Time of Supply of Services

Time of Supply of Services
Supply ceases before completion time when the amount ceases

In case of Reverse charge

the date of payment
the date immediately following 60 days from the date of issue of invoice

Supply of vouchers
Date of issue of the coupon, if the amount is identifiable at that point
Time of redemption of the voucher, in all other cases

Residual
In the case where a periodical return has to be filed, the date on which such return is to be submitted
In any other case, the date on which CGST/SGST is paid

Continuous Supply of Services

Section 2(33) “continuous supply of services” means a supply of services which is provided, or agreed to be delivered, continuously or on recurrent basis, under a contract, for a period exceeding three months with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify;

Additional Consideration Section further provides that the time of Supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value. Thus, any additional consideration for any supply of services shall be taxable at the time when such additional consideration is received.

Time of supply of services – rate change

Supply Issue of invoice Receipt of payment
Time of supply Before the change in the rate of tax
After the difference in the rate of tax
Date of receipt of payment, or date of issue of invoice, whichever is earlier Before the change in the rate of tax

   Forex trading can seem daunting for beginners, but it doesn't have to be. One of the simplest and most effective strategies for newcomers is the trend-following strategy. Let's delve deeper into this approach, breaking down its key components, step-by-step implementation, advantages, and why it's particularly suitable for those just starting out in the forex market.

Understanding the Trend-Following Strategy

   The trend-following strategy revolves around the idea that prices tend to move in trends, either upwards (bullish) or downwards (bearish). The core principle is to identify these trends and then trade in alignment with them, assuming that the trend will persist. It's akin to catching a ride on a wave, going with the flow of the market rather than against it.

Key Components of the Trend-Following Strategy

Identifying trends:  The first step is recognizing the direction of the prevailing trend. Traders typically employ technical indicators such as moving averages, trendlines, or trend channels to determine whether the market is in an uptrend or downtrend. One common technique is using moving averages, where the crossover of shorter-term and longer-term moving averages signals a potential change in trend direction.

Entry and exit points:  Once the trend is identified, traders look for opportune moments to enter and exit trades. This could involve waiting for a breakout above a resistance level or a pullback to a support level in line with the trend. Indicators like the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD) can help confirm entry and exit points by assessing the strength of the trend.

Risk management:  Effective risk management is critical in forex trading, especially for beginners. Position sizing techniques are used to determine the appropriate trade size based on factors like account size and risk tolerance. Additionally, traders should always employ stop-loss orders to limit potential losses and protect their capital.

Step-by-Step Guide to Implementing the Trend-Following Strategy

Identify the trend:  Utilize technical tools to identify whether the market is trending upwards, downwards, or moving sideways.

Wait for confirmation:  Once a potential trend is spotted, wait for confirmation before entering a trade. Confirmation could come from a breakout, a bounce from a key support or resistance level, or signals from technical indicators.

Set entry and exit points:  Determine clear entry and exit points based on your analysis and chosen indicators. This ensures you have a predefined plan for each trade.

Manage your risk:  Calculate the appropriate position size to limit risk exposure. Set stop-loss orders to automatically exit trades if they move against you, preventing significant losses.

Monitor and adjust:  Keep an eye on your trades and be prepared to adjust your strategy if necessary. This could involve trailing stop-loss orders to lock in profits as the trade moves in your favor or adjusting profit targets based on market conditions.

Review and learn:  After the trade is closed, take the time to review your performance. Identify what worked well and what didn't, and use this knowledge to refine your strategy for future trades.

Advantages of the Trend-Following Strategy for Beginners

Simplicity:  The trend-following strategy is relatively straightforward, making it accessible for beginners. It provides clear guidelines for identifying trends and entering trades.

Objective rules:  This strategy relies on objective criteria rather than subjective interpretation, reducing the impact of emotions on trading decisions.

Profit potential:  By trading in the direction of the trend, there is potential to capture significant market movements and generate profits.

Risk management:  Emphasizes the importance of risk management, with techniques like position sizing and stop-loss orders helping to protect capital and minimize losses.

Why It's Suitable for Beginners

Easy to understand:  The concept of following trends is intuitive and doesn't require advanced knowledge of market dynamics.

Clear guidelines:  The strategy provides clear rules for identifying trends and executing trades, reducing confusion for beginners.

Risk control:  Emphasizes risk management, teaching beginners to prioritize capital protection and avoid large losses.

Applicable across markets:  The trend-following strategy can be applied to various markets and timeframes, offering flexibility for beginners to explore different assets and trading styles.

Conclusion

   The trend-following strategy offers a solid foundation for beginners venturing into the world of forex trading. Its simplicity, clear guidelines, and emphasis on risk management make it an ideal starting point for those looking to build their trading skills and confidence. By focusing on identifying trends, setting clear entry and exit points, and managing risk effectively, beginners can navigate the forex market with greater ease and improve their chances of success over time. Remember, consistent practice, ongoing learning, and disciplined execution are key to mastering any trading strategy, including the trend-following approach.