THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
TIME AND VALUE OF SUPPLY
Section 13: Time of supply of services.
(1) The liability to pay tax on services shall arise at the time of supply,
as determined in accordance with the provisions of this section.
(2) The time of supply of services shall be the earliest of the following
dates, namely:—
(a) the date of issue of invoice by the supplier, if the invoice is issued
within the period prescribed under
[helldod
old 1
omit[sub-section (2) of]helldod]
section 31 or the date of
receipt of payment, whichever is earlier; or
(b) the date of provision of service, if the invoice is not issued within the
period prescribed under
[helldod
old
1 omit[sub-section (2) of]helldod] section 31 or the date of receipt of
payment, whichever is earlier; or
(c) the date on which the recipient shows the receipt of services in his books
of account, in a case where the provisions of clause (a) or clause (b) do not
apply:
Provided that where the supplier of taxable service receives an amount upto one thousand rupees in excess of the amount indicated
in the tax invoice, the time of supply to the extent of such excess amount
shall, at the option of the said supplier, be the date of issue of invoice
relating to such excess amount.
Explanation.––For the purposes of clauses (a) and (b)––
(i) the supply shall be deemed to have been made to the extent it is covered by
the invoice or, as the case may be, the payment;
(ii) “the date of receipt of payment” shall be the date on which the payment is
entered in the books of account of the supplier or the date on which the
payment is credited to his bank account, whichever is earlier.
(3) In case of supplies in respect of which tax is paid or liable to be paid on
reverse charge basis, the time of supply shall be the earlier of the following
dates, namely:––
(a) the date of payment as entered
in the books of account of the recipient or the date on which the payment is
debited in his bank account, whichever is earlier; or
(b) the date immediately following
sixty days from the date of issue of invoice or any other document, by whatever
name called, in lieu thereof by the supplier:
Provided that where it is not possible to determine the time of supply under
clause (a) or clause (b), the time of supply shall be the date of entry in the
books of account of the recipient of supply:
Provided further that in case of supply by associated enterprises, where the
supplier of service is located outside India, the time of supply shall be the
date of entry in the books of account of the recipient of supply or the date of
payment, whichever is earlier.
(4) In case of supply of vouchers by a supplier, the time of supply shall be––
(a) the date of issue of voucher, if
the supply is identifiable at that point; or
(b) the date of redemption of
voucher, in all other cases.d
(5) Where it is not possible to determine the time of supply under the
provisions of sub-section (2) or sub-section (3) or sub-section (4), the time
of supply shall––
(a) in a case where a periodical
return has to be filed, be the date on which such return is to be filed; or
(b) in any other case, be the date
on which the tax is paid.
(6) 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.