Tax Laws and Practice · Time, Value and Place of Supply

Time of Supply of Services under Section 13 CGST Act

Updated 11 October 2026 · Fact-checked

Time of supply of services is the date on which GST liability arises, fixed by Section 13 of the CGST Act. Under forward charge it is the earlier of invoice date or payment date, if the invoice is issued on time. Reverse charge, vouchers and residual cases have their own rules.

Understand Time of Supply of Services

GST is payable when a supply happens, but the law needs a fixed date to say when liability arises. That date is the time of supply. It decides the month in which you report the supply and pay tax, and which rate applies.

For services, Section 13 gives the rule. The idea is simple. The supplier should pay tax when he issues the invoice or receives money, and not later. So the law picks the earliest event, subject to the invoice being issued within the time set by Section 31.

There are separate rules for four situations: forward charge (supplier pays tax), reverse charge (recipient pays tax), vouchers, and cases where none of these can fix the date. There is also a special rule for interest, late fee or penalty on delayed payment.

The main difference from goods (Section 12) is this. For goods, the time is the earlier of invoice date (or the last date by which the invoice is due) and payment date. For services, if the invoice is not issued in time, the date of provision of service is compared with the payment date. Also, the reverse charge period is 30 days for goods and 60 days for services.

Key rules to remember

Forward charge - Section 13(2): Invoice issued within Section 31 period: earlier of (date of invoice, date of receipt of payment). Invoice not issued within that period: earlier of (date of provision of service, date of receipt of payment).; If neither applies, the date the recipient shows receipt of services in his books is the time of supply. Supply is deemed made only to the extent covered by the invoice or payment.
Date of receipt of payment: Earlier of (date entered in supplier's books, date credited to supplier's bank account); Applies for forward charge. Use the earlier date, not the later.
Excess receipt up to ₹1,000: Excess amount up to ₹1,000 over the invoice: time of supply, at supplier's option, is the date of invoice for that excess; The option belongs to the supplier. It applies only to the excess, not the whole invoice.
Reverse charge - Section 13(3): Earlier of (a) earlier of payment entered in recipient's books or debited in his bank; (b) day after 60 days from supplier's invoice, where supplier must issue invoice; (c) date of invoice issued by recipient, where recipient must issue invoice; If it cannot be fixed, it is the date of entry in the recipient's books. Clause (c) was added from 1-11-2024.
Associated enterprises, supplier outside India: Earlier of (date of entry in recipient's books, date of payment); Applies under reverse charge when the supplier of service is located outside India and the parties are associated enterprises.
Vouchers - Section 13(4): Supply identifiable at issue: date of issue of voucher. Otherwise: date of redemption of voucher; Same rule as for goods.
Residual rule - Section 13(5): Periodical return required: date on which the return is to be filed. Otherwise: date on which tax is paid; Used only when sub-sections (2), (3) and (4) cannot fix the date.
Interest, late fee, penalty - Section 13(6): Date on which the supplier receives the addition in value; Applies to the extra amount charged for delayed payment of consideration.

How to solve Time of Supply of Services questions

Use this order for any question on time of supply of services. Write the provision before you apply it.

1Identify whether tax is on forward charge or reverse charge. This decides which sub-section applies.
2List every date in the facts: service provided, invoice issued, payment entered in books, payment credited to bank, recipient's booking date.
3For forward charge, take the payment date as the earlier of book entry and bank credit.
4Check whether the invoice was issued within the Section 31 period. If yes, compare invoice date with payment date. If no, compare date of provision of service with payment date.
5For reverse charge, compute the 60th-day limit from the supplier's invoice (the day after 60 days) and compare with payment date and any recipient invoice date.
6Apply the part-supply rule: fix a separate time of supply for each part covered by an invoice or payment.
7If no date can be fixed, apply the fallback: recipient's books (forward charge clause (c) or reverse charge proviso), or Section 13(5).
8State the conclusion clearly with the date and the section.

Quickest way: Earliest-date shortcut

When to use it: Use in numerical questions with several dates and limited time.

Write the dates in a short timeline.
Mark whether the invoice was in time. If it was not, ignore the invoice date and use the service date.
Pick the earlier of the two relevant dates for forward charge.
For reverse charge, add 60 days to the invoice date, then add one day. Compare it with the payment date.
For part payments, split the supply and repeat for each part.

Common mistakes in Time of Supply of Services

Using the invoice date even when the invoice was issued late.
Students copy the goods rule, where the last date for invoice is itself a trigger.
Fix: For services, if the invoice is late, compare the date of provision of service with the payment date.
Using 30 days for reverse charge on services.
The 30-day period for goods is confused with services.
Fix: Remember: goods 30 days, services 60 days, and the time of supply is the day immediately following that period.
Treating the bank credit date as the payment date even if the books entry is earlier.
Students think only cash received matters.
Fix: Payment date is the earlier of the books entry date and the bank credit date.
Treating the whole supply as taxable on one date when there are advances.
Students ignore that supply is deemed made to the extent covered by invoice or payment.
Fix: Split the value and give each part its own time of supply.
Ignoring the clause for recipient's invoice under reverse charge.
Older notes show only two clauses.
Fix: Include the date of the recipient's invoice where the recipient must issue the invoice, as the law stands from 1-11-2024.
Applying the ₹1,000 excess option to the full invoice.
The proviso is remembered loosely.
Fix: The option covers only the excess amount up to ₹1,000, and only at the supplier's option.

Worked examples

Example 1

Mehta Consultants, Pune, completed a consulting service for Kaveri Ltd on 5 March. The invoice, due under Section 31 by 20 March, was issued on 28 March. Kaveri Ltd paid ₹2,00,000 by cheque; the amount was credited to Mehta's bank on 25 March and entered in books on 22 March. Determine the time of supply (forward charge).

Show the solution

The tax is on forward charge, so Section 13(2) applies.
The invoice was issued on 28 March, after the Section 31 period ended on 20 March. So clause (b) applies: compare date of provision of service with date of receipt of payment.
Date of provision of service: 5 March.
Date of receipt of payment is the earlier of books entry (22 March) and bank credit (25 March), so 22 March.
The earlier of 5 March and 22 March is 5 March.

Answer: The time of supply is 5 March, the date of provision of service, under Section 13(2)(b).

Example 2

Rao Legal Services, an advocate, provides services to Zenith Ltd, a registered company that must pay GST under reverse charge. The advocate issued an invoice on 10 June. Zenith Ltd paid on 20 August. Find the time of supply for Zenith Ltd. Assume the advocate must issue the invoice.

Show the solution

Reverse charge applies, so Section 13(3) governs.
Clause (a): payment date is 20 August.
Clause (b): the date immediately following 60 days from the invoice date. 60 days from 10 June: 20 days remain in June (to 30 June), 31 days in July brings it to 51, then 9 days in August gives 60 on 9 August. The day immediately following is 10 August.
Clause (c) does not apply because the supplier issues the invoice.
The earlier of 20 August and 10 August is 10 August.

Answer: The time of supply is 10 August, the day after 60 days from the invoice date, under Section 13(3)(b).

Exam tips

Begin every answer with the provision: say Section 13 and the sub-section that applies, then the facts, then the conclusion.
Draw a small timeline of dates. It helps you avoid picking the wrong one and shows the examiner your reasoning.
Learn the contrasts with goods: Section 12(2)(a) uses the last date for invoice, while 13(2) splits on whether the invoice is in time; and 30 days vs 60 days under reverse charge.
In reverse charge questions, count days carefully and give the day immediately following the 60th day.
Do not quote rate-change rules here; they belong to a separate topic and need their own section.

Practice questions from Time, Value and Place of Supply

Time of Supply of Services in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Time of Supply of Services: frequently asked questions

What is the time of supply of services under Section 13?

It is the date on which liability to pay GST on a service arises. Under forward charge it is the earlier of invoice date or payment date if the invoice is issued on time. Otherwise it is the earlier of the date of service and the payment date.

How is time of supply of services different from goods?

For goods, the trigger is the earlier of the invoice date (or the last date for issuing it) and payment. For services, an invoice issued late is ignored and the date of provision of service is used. Under reverse charge, goods use 30 days and services use 60 days.

What is the time of supply of services under reverse charge?

It is the earliest of the recipient's payment date, the day after 60 days from the supplier's invoice, or the date of the recipient's invoice where the recipient must issue it. If none can be fixed, it is the date of entry in the recipient's books.

What is the time of supply of vouchers?

It is the date of issue of the voucher if the supply is identifiable at that point. In all other cases it is the date of redemption of the voucher.