Taxable event: Manufacture
Point of Taxation: Time of clearance of the goods

The taxable event is the manufacture of the goods but the excise duty is paid at the time of clearance of goods. Charging section is Section 3 of the Central Excise Act, 1944. The collection of the duty is regulated by the Rules made under the Act i.e. Rule 4, 5 & 8 of Central Excise Rules, 2002 for determination of manner of payment of excise duty.

Taxable event: Import of goods[ Section 2(23) of Customs Act, 1962]

Date of determination of rate of duty

•  date on which a bill of entry is presented under section 46 (in the case of goods entered for home consumption)

•  date of entry inwards in the case of prior bill of entry (bill of entry presented before the date of entry inwards of the vessel or the arrival of the aircraft or the vehicle)

•  date on which a bill of entry for home consumptionis presented (in the case of goods cleared from a warehouse under section 68)];

•  -in the case of any other goods, on the date of payment of duty.

[Refer Section 12 & Section 15 of Customs Act, 1962. The provisions of section 15 is not applicable to baggage and goods imported by post.

*Taxable Event-Service provided or agreed to be provided/ rendering services or agreement to render services.

Point of Taxation: Date of invoice or Date of payment, whichever is earlier(General Rule-Rule 3 of Point of Taxation Rules, 2011)

[Refer Section 66B of Finance Act' 1994; Point of Taxation Rules,2011]

* The present discussion is in respect of GOODS, Service tax (being the component of indirect tax system) is mentioned for the sake of convenience only.

Taxable event: Sale or purchase of goods.

Point of Taxation: Time of sale / time of transfer of title or possession of goods.

Definition of SALE:

Central Excise Act, 1944

Section 2(h) : "sale" and "purchase", with their grammatical variations and cognate expressions, mean any transfer of the possession of goods by one person to another in the ordinary course of trade or business for cash or deferred payment or other valuable consideration.

Karnataka Value Added Tax Act, 2003

2(29) "Sale" with all its grammatical variation and cognate expressions means every transfer of the property in goods (other than by way of a mortgage, hypothecation, charge or pledge) by one person to another in the course of trade or business for cash or for deferred payment or other valuable consideration and includes,-

(a) A transfer otherwise than in pursuance of a contract of property in any goods for cash, deferred payment or other valuable consideration;

(b) A transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

(c) A delivery of goods on hire purchase or any system of payment by installments;

(d) A transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration.

GUJARAT VALUE ADDED TAX ACT, 2003

2(23) "Sale" means a sale of goods made within the State for cash or deferred payment or other valuable consideration and includes,-

(a) transfer, otherwise than in pursuance of a contract, of property in goods for cash, deferred payment or other valuable consideration,

(b) transfer of property in goods (whether as goods or in some other form) involved in execution of a works contract,

(c) delivery of goods on hire purchase or any system of payment by installments,

(d) transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration,

(e) supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration,

(f) supply of goods by a society or club or an association to its members on payment of a price or of fees or subscription or any consideration,

(g) supply of goods by way of or as part of any service or in any other manner whatsoever, of

(h) supply of goods being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration,

(i) supply by way of barter of goods,

(j) disposal of goods by a person but does not include a mortgage, hypothecation, charge or pledge; and the words "sell", "buy" and "purchase" with all their grammatical variations and cognate expressions shall be construed accordingly.

Definition of GOODS:

Sale of Goods Act, 1930

2(7) "goods" means every kind of moveable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;

Karnataka Value Added Tax Act, 2003

2(15) "Goods" means all kinds of movable property (other than newspaper, actionable claims, stocks and shares and securities) and includes livestock, all materials, commodities and articles (including goods, as goods or in some other form) involved in the execution of a works contract or those goods to be used in the fitting out, improvement or repair of movable property, and all growing crops, grass or things attached to, or forming part of the land which are agreed to be severed before sale or under the contract of sale.

GUJARAT VALUE ADDED TAX ACT, 2003.

2(13) "Goods" means all kinds of movable property (other than newspapers, actionable claims, electricity, stocks and shares and securities) and includes live stocks, all materials, articles and commodities and every kind of property (whether as goods or in some other form) involved in the execution of works contract, all intangible commodities and growing crops, grass, standing timber or things attached to or forming part of the land, which are agreed to be severed before sales or under the contract of sale;

TIME OF SUPPLY DEFINED:

Karnataka Value Added Tax Act, 2003

7. Time of sale of goods :

(1) Notwithstanding anything contained in the Sale of Goods Act, 1930 (Central Act 3 of 1930), for the purpose of this Act, and subject to subsection (2), the sale of goods shall be deemed to have taken place at the time of transfer of title or possession or incorporation of the goods in the course of execution of any works contract whether or not there is receipt of payment:

Provided that where a dealer issues a tax invoice in respect of such sale within fourteen days from the date of the sale, the sale shall be deemed to have taken place at the time the invoice is issued.

(2) Where, before the time applicable in sub-section (1), the dealer selling the goods issues a tax invoice in respect of such sale or receives payment in respect of such sale, the sale shall, to the extent that it is covered by the invoice or payment, be deemed to have taken at the time the invoice is issued or the payment is received.

(3) The Commissioner may on an application of any dealer exempt such dealer subject to such conditions as he may specify, from the time specified in sub- section (1).

ASSAM VALUE ADDED TAX ACT 2003

18. Timeof sale of goods:

(1) Notwithstanding anything contained in the Sale of Goods Act, 1930, for the purpose of this Act, the time of sale of goods shall be deemed to be the earliest of the following,-

(a) Issue of the tax invoice;

(b) Receipt of payment, in full or in part;

(c) Transfer of title or possession of the goods or incorporation of the goods in the course of execution of any works contract.

Taxable Event : Supply of goods
Point of Taxation : Time of Supply of goods.

Goods defined in the GST Model law:

2(48) "goods'' means every kind of movable property other than actionable claim and money but includes securities, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under the contract of supply;

Explanation.– For the purpose of this clause, the term 'moveable property' shall not include any intangible property.

Supply

Section 3 of the Model GST Act provides the meaning and scope of supply of goods::

TIME OF SUPPLY OF GOODS
Defined in Section 2(101) of Model GST Law.

2(101) "time of supply of goods'' shall have the meaning as assigned to it in section 12.

Section 12: It is being tabulated below:

Removal of goods/goods made available:

Explanation 1.- The provisions of Section 12(2)(a)(ii) 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.

12(3)

Continuous supply of goods:

Section 12(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;

Section 2(30) " 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.

Tax payable under REVERSE CHARGE

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.

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: