Question

XYZ issued Service Invoice towards rental charges for laboratory equipment. The period contract is for the period 31.07.2018 to 02.11.2018 and the Invoice for the same is issued on 01.12.2018. Is it in line with the provisions under GST or invoice was required to be issued on 31.07.2018?

Answer

Section 31 of CGST Act read with Rule-47 states that the invoice in the case of the taxable supply of services, shall be issued within a period of thirty days from the date of the supply of service.

Further Section 13 of CGST Act states that the time of supply of services shall be the earliest of date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier.

In your case period of contract is 31.07.2018 to 02.11.2018 and the invoice for the same has been issued within 30 days (i.e. on 01.12.2018) from the date of completion of contract (supply of service). But the time of supply as given in above section should also be taken care of because if payment has received in advance i.e on or before 01.12.2018 then the time of supply of service shall be the date on which payment has received.  (Reply dt.15/04/2019)