As per Section 13 of CGST Act, 2017, the liability to pay tax arises at the time of supply of services as determined in accordance with the provisions of this section. CGST/SGST or IGST must be paid at the time of supply.
1. According to section 13(2) of CGST Act in case of supplies in respect of which tax is liable to be paid on forward basis the time of supply of goods shall be the earlier of the following dates namely
Note:
As per Rule 47 of CGST Act, invoice should be issued within 30 days from the date of supply of services. If the supplier is an insurer or a banking company or a financial institution, including a non-banking financial company, the invoice or any document in lieu thereof should be issued within 45 days.
When the supplier receives an amount of up to Rs.1000 in excess of an invoice value, the time of supply shall be, for the excess amount, at the option of supplier, can be the date of invoice for such excess amount.
For example
Mr. A provides services worth Rs 20000 to Mr. B on 1st January. The invoice was issued on 20th January and the payment for the same was received on 1st February. In the example ascertain first, if the invoice was issued within the prescribed time. The prescribed time is 30 days from the date of supply i.e. 31st January. The invoice was issued on 20th January. This means that the invoice was issued within prescribed time limit. The time of supply will be earliest of –
This means that the time of supply of services will be 20th January.
2. According to section 13(3) of the CGST Act 2017 in case of supplies on reverse charge basis then time of supply would be the earliest of the following date:
3. According to section 13(4) of the CGST Act 2017 in case of vouchers for services then time of supply would be the earliest of the following date:
4. According to section 13(5) of the CGST Act 2017 in residual case, where none of the provisions of sub-sections 2 to 4 of section 13 can be applied, the time of supply would be fixed as following date
5. As per section 13(6) of the CGST Act 2017, the time of supply for any interest, late fee or penalty for delayed payment as an addition consideration for the supplies made, is the date on which the supplier receives such addition in value.
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