Time of supply of services

it provides a brief description of the provisions of time of supply

1. UNDER GST
(POINT IN TIME WHEN THE LIABILITY TO PAY TAX ARISES)
Part II

2. TIME OF SUPPLY
Time of Supply of Goods
(Section 12 of the CGST Act,
2017)
Time of Supply of Services
(Section 13 of the CGST Act,
2017)
Change in rate of tax in respect of supply of goods or
services (Section 14 of the CGST Act, 2017)
PROVISIONS RELATED TO TIME OF SUPPLY

3. TIME OF SUPPLY OF SERVICES
(SECTION 13 OF THE CGST ACT, 2017)
CLASSIFICATION OF SITUATIONS TO DETERMINE
TIME OF SUPPLY OF SERVICES U/S 13
SUPPLY OF
SERVICES UNDER
FORWARD CHARGE
u/s 13 (2
)
SUPPLY OF
SERVICES UNDER
REVERSE CHARGE
u/s 13 (3
)
SUPPLY OF
VOUCHERS THAT
CAN BE USED TO PAY
FOR SERVICES u/s 13
(4)
Residual cases u/s
13(5)
an addition in
the value of
supply by way
of interest, late
fee or penalty
for delayed
payment of any
consideration
u/s 13 (6)

4. TIME OF SUPPLY OF SERVICES UNDER FORWARD CHARGE
[Section 13(2) of the CGST Act, 2017]

ThetimeofsupplyofServicesshallbe theearliestofthefollowingdates,
namely:—
a.
Thedateofissueofinvoicebythesupplier,iftheinvoiceisissued
withintheperiodprescribedundersection31orthedateofreceipt
ofpayment,whicheverisearlier;or
b.
Thedateofprovisionofservice,iftheinvoiceisnotissuedwithinthe
periodprescribedundersection31orthedateofreceiptofpayment,
whicheverisearlier;or
c.
Thedateonwhichtherecipientshowsthereceiptofservicesinhis
booksofaccount,inacasewheretheprovisionsofclause(a)or
clause(b)donotapply.

5. TIME OF SUPPLY OF SERVICESUNDER FORWARD CHARGE
[SECTION 13(2) OF THE CGST ACT, 2017]
Theinvoiceis
issuedwithinthe
period
prescribedunder
section31
i.
Thedateofissueofinvoicebythe
Supplier;
Or
ii.Thedateofreceiptofpayment
Time of Supply of
Services (a)
Theinvoiceis
issuedwithinthe
period
prescribedunder
section31
i.
Thedateofprovisionofservice;
Or
ii.Thedateofreceiptofpayment
Time of Supply
of Services (b)
provisionsofclause(a)
orclause(b)donot
applyonSupplyof
Services.
If Yes
Thedateonwhichthe
recipientshowsthe
receiptofservicesinhis
booksofaccount
Time of
Supply of
Services (c)

6. TIME OF SUPPLY OF SERVICES UNDER FORWARD CHARGE
[Section 13(2) of the CGST Act, 2017]

Someimportantpoints-

‘Thedateofreceiptofpayment’shallbethedateonwhichthepaymentis
enteredinthebooksofaccountofthesupplierorthedateonwhichthe
paymentiscreditedtohisbankaccount,whicheverisearlier.

7. THE DATE OF RECEIPT OF PAYMENT
i.Thedateonwhichthepaymentisenteredin
thebooksofaccountofthesupplier;
or
ii.Thedateonwhichthepaymentiscreditedto
hisbankaccount.
Whichever
is earlier
from ior ii
The date of receipt of
payment

8. TIME OF SUPPLY OF SERVICESUNDER FORWARD CHARGE
[Section 13(2) of the CGST Act, 2017]

Someimportantpoints-

‘supply’shallbedeemedtohavebeenmadetotheextentitiscoveredby
theinvoiceor,asthecasemaybe,thepayment.

Wherethesupplieroftaxableservicereceivesanamountuptoone
thousandrupeesinexcessoftheamountindicatedinthetaxinvoice,the
timeofsupplytotheextentofsuchexcessamountshall,attheoptionof
thesaidsupplier,bethedateofissueofinvoicerelatingtosuchexcess
amount.

9. TIME OF SUPPLY OF SERVICESUNDER FORWARD CHARGE
[Section 13(2) of the CGST Act, 2017]

Someimportantpoints-

TimeofissueofinvoiceforServicesu/s31oftheCGSTAct,2017
1.
SupplyingofTaxableServices-
•
beforeoraftertheprovisionofservicebutwithinaprescribedperiod
•
TheGovernmentmay,ontherecommendationsoftheCouncil,bynotification,—
a.
specifythecategoriesofservicesorsuppliesinrespectofwhichataxinvoice
shallbeissued,withinsuchtimeandinsuchmannerasmaybeprescribed;
b.
subjecttotheconditionmentionedabove-
i.
anyotherdocumentissuedinrelationtothesupplyshallbedeemedto
beataxinvoice;or
ii.
taxinvoicemaynotbeissued.

10. TIME OF SUPPLY OF SERVICES UNDER FORWARD CHARGE
[Section 13(2) of the CGST Act, 2017]

Someimportantpoints-

TimeofissueofinvoiceforServicesu/s31oftheCGSTAct,20172.Notissueataxinvoice
•
aregisteredpersonmaynotissueataxinvoiceifthevalueofthegoodsorservices
orbothsuppliedislessthantwohundredrupeessubjecttosuchconditionsandin
suchmannerasmaybeprescribed.

11. TIME OF SUPPLY OF SERVICES UNDER FORWARD CHARGE
[Section 13(2) of the CGST Act, 2017]

Someimportantpoints-

TimeofissueofinvoiceforServicesu/s31oftheCGSTAct,2017
3.continuoussupplyofservices
a.
wheretheduedateofpaymentisascertainablefromthecontract,theinvoiceshall
beissuedonorbeforetheduedateofpayment;
b.
wheretheduedateofpaymentisnotascertainablefromthecontract,theinvoice
shallbeissuedbeforeoratthetimewhenthesupplierofservicereceivesthe
payment;
c.
wherethepaymentislinkedtothecompletionofanevent,theinvoiceshallbe
issuedonorbeforethedateofcompletionofthatevent.

12. TIME OF SUPPLY OF SERVICES UNDER FORWARD CHARGE
[Section 13(2) of the CGST Act, 2017]

Someimportantpoints-

TimeofissueofinvoiceforServicesu/s31oftheCGSTAct,2017
4.Thesupplyofservicesceases
•
Inacasewherethesupplyofservicesceasesunderacontractbeforethe
completionofthesupply,theinvoiceshallbeissuedatthetimewhenthesupply
ceasesandsuchinvoiceshallbeissuedtotheextentofthesupplymadebefore
suchcessation.

13. TIME OF SUPPLY OF SERVICES UNDER REVERSE CHARGE
[Section 13(3) of the CGST Act, 2017]

TheTimeofsupplyofServicesshallbetheearlierofthefollowingdates,namely:—
a.
Thedateofpaymentasenteredinthebooksofaccountoftherecipientorthe
dateonwhichthepaymentisdebitedinhisbankaccount,whicheveris
earlier;or
b.
Thedateimmediatelyfollowingsixtydaysfromthedateofissueofinvoiceor
anyotherdocument,bywhatevernamecalled,inlieuthereofbythesupplier.
*whereitisnotpossibletodeterminethetimeofsupplyunderclause(a)orclause(b),
thetimeofsupplyshallbethedateofentryinthebooksofaccountoftherecipientof
supply.
*Incaseofsupplybyassociatedenterprises,wherethesupplierofserviceislocated
outsideIndia,thetimeofsupplyshallbethedateofentryinthebooksofaccountofthe
recipientofsupplyorthedateofpayment,whicheverisearlier.

14. TIME OF SUPPLY OF SERVICESUNDER REVERSE CHARGE
[SECTION 13(3) OF THE CGST ACT, 2017]
i.
Thedateofpaymentasenteredinthe
booksofaccountoftherecipient;
or
ii.Thedateonwhichthepaymentis
debitedinhisbankaccount. Whichever is
earlier from ior ii
a
Whicheverisearlierfrom
a
or
b
isthe“TimeofSupplyofServices”underReverse
charge
Thedateimmediatelyfollowingsixtydaysfromthe
dateofissueofinvoiceoranyotherdocument,bythe
supplier
b

15. TIME OF SUPPLY OF SERVICES UNDER REVERSE CHARGE
[SECTION 13(3) OF THE CGST ACT, 2017]
Notpossibleto
determinethetimeof
supplyunderclause
(a)orclause(b),
If yes
Thedateofentryin
thebooksofaccount
oftherecipientof
supply.
Time of
supply of
services
supplybyassociated
enterprises,wherethe
supplierofserviceis
locatedoutsideIndia
i.Thedateofentryin
thebooksofaccountof
therecipientofsupply
or
ii.thedateofpayment
Time of supply
of services

16. TIME OF SUPPLY OF VOUCHERS
[Section 13(4) of the CGST Act, 2017]

Incaseofsupplyofvouchersbyasupplier,thetimeofsupplyshallbe—
a.
thedateofissueofvoucher,ifthesupplyisidentifiableatthatpoint;or
b.
thedateofredemptionofvoucher,inallothercases.

17. TIME OF SUPPLY OF VOUCHERS
[SECTION 13(4) OF THE CGST ACT, 2017]
In case of supply of vouchers by a Suppliers
Time of
Supply
If supply is identifiable
If supply is not identifiable or
in other cases
the date of issue of voucher
the date of redemption of
voucher

18. TIME OF SUPPLY OF SERVICESIN RESIDUAL CASES
[Section 13(5) of the CGST Act, 2017]

Whereitisnotpossibletodeterminethetimeofsupplyundertheprovisions
ofsection13(2),13(3)and13(4),thetimeofsupplyshall-
a.
bethedateonwhichsuchreturnistobefiledifaperiodicalreturnhas
tobefiled;or
b.
inanyothercase,bethedateonwhichthetaxispaid.

19. TIME OF SUPPLY OF SERVICESIN RESIDUAL CASES
[SECTION 13(5) OF THE CGST ACT, 2017]
TIME OF SUPPLY OF SERVICESIN RESIDUAL CASES
If periodical return has to be
filed
If periodical return has not to
be filed or in any other cases
the date on which such
return is to be filed
the date on which the tax is
paid

20. TIME OF SUPPLY IN CASE OF AN ADDITION IN THE VALUE OF SUPPLY BY
WAY OF INTEREST, LATE FEE, OR PENALTY FOR DELAYED PAYMENT
[Section 13(6) of the CGST Act, 2017]

Thetimeofsupplytotheextentitrelatestoanadditioninthevalueofsupply
bywayofinterest,latefeeorpenaltyfordelayedpaymentofany
considerationshallbethedateonwhichthesupplierreceivessuchadditionin
value.

21. CHANGE IN RATE OF TAX IN RESPECT OF SUPPLY OF
GOODS OR SERVICES
[Section 14 of the CGST Act, 2017]
Thereisachangeintherateoftaxinrespectofgoodsorservicesorboth,shall
bedeterminedinthefollowingmanner,namely:-
a.
incasethegoodsorservicesorbothhavebeensuppliedbeforethechange
inrateoftax;OR
b.
incasethegoodsorservicesorbothhavebeensuppliedafterthechange
inrateoftax.

22. TIME OF SUPPLY
u/s 14 of CGST Act, 2017
Goods or Services or Both have
been Supplied
Before the change in
rate of tax
(Clause a)
After the change in rate
of tax
(Clause b)
TIMEOFSUPPLYINCASEOFCHANGEINRATEOFTAXINRESPECTOFSUPPLYOFGOODSORSERVICES

23. GOODS AND SERVICES OR BOTH HAVE BEEN SUPPLIED
BEFORE THE CHANGE IN RATE OF TAX
[Section 14 (a) of the CGST Act, 2017]
Thereisachangeintherateoftaxafterthegoodsorservicesorbothhavebeen
supplied,shallbedeterminedinthefollowingmanner,namely:–
Sub
clause
Change in rate of taxSituation occurs Time of supply
i. After change in rate of
tax
1.theinvoiceforthesamehasbeen
issuedand
2.thepaymentisalsoreceived
i.thedateofreceiptof
paymentor
ii.thedateofissueof
invoice,
whicheverisearlierfromi.or
ii.
ii. prior to the change in
rate of tax
the invoice has been issued the date of issue of invoice
after the change in
rate of tax
The payment is received

24. GOODS AND SERVICES OR BOTH HAVE BEEN SUPPLIED
BEFORE THE CHANGE IN RATE OF TAX
[Section 14 (a) of the CGST Act, 2017]
Thereisachangeintherateoftaxafterthegoodsorservicesorbothhavebeen
supplied,shallbedeterminedinthefollowingmanner,namely:–
Sub
clause
Change in rate of taxSituation occurs Time of supply
iii. prior to the change in
rate of tax
the payment has been received The date of receipt of
payment
after the change in
rate of tax
the invoice for the same is issued

25. GOODS AND SERVICES OR BOTH HAVE BEEN SUPPLIED
AFTERTHE CHANGE IN RATE OF TAX
[Section 14 (a) of the CGST Act, 2017]
Thereisachangeintherateoftaxbeforethegoodsorservicesorbothhavebeen
supplied,shallbedeterminedinthefollowingmanner,namely:–
Sub
clause
Change in rate of taxSituation occurs Time of supply
i. prior to the change in
rate of tax
the invoice has been issued The date of receipt of
payment
after the change in
rate of tax
the payment is received
ii. Before change in rate
of tax
1.the invoice has been issued and
2.payment is received
i.thedateofreceiptof
paymentor
ii.thedateofissueof
invoice,
whicheverisearlierfromi.or
ii.

26. GOODS AND SERVICES OR BOTH HAVE BEEN SUPPLIED
AFTERTHE CHANGE IN RATE OF TAX
[Section 14 (a) of the CGST Act, 2017]
Thereisachangeintherateoftaxbeforethegoodsorservicesorbothhavebeen
supplied,shallbedeterminedinthefollowingmanner,namely:–
Sub
clause
Change in rate of taxSituation occurs Time of supply
ii. prior to the change in
rate of tax
The payment is received the date of issue of invoice
after the change in
rate of tax
the invoice has been issued

27. CHANGE IN RATE OF TAX IN RESPECT OF SUPPLY OF GOODS
OR SERVICES
[Section 14 of the CGST Act, 2017]

Someimportantpoints-

‘Thedateofreceiptofpayment’shallbethedateonwhichthepaymentis
enteredinthebooksofaccountofthesupplierorthedateonwhichthe
paymentiscreditedtohisbankaccount,whicheverisearlier.
**Thedateofreceiptofpaymentshallbethedateofcredit
inthebankaccountifsuchcreditinthebankaccountis
afterfourworkingdaysfromthedateofchangeintherate
oftax.