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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Overview of Goods and Services Tax

A supplier supplied services after a rate change. The invoice was issued after the change, but payment was received before the change in rate of tax. Under section 14 of the CGST Act, 2017, the time of supply is:

The time of supply is the date of issue of invoice. For supply made after the rate change, where the invoice is issued after the change but payment came before it, section 14 treats the invoice date as the time of supply.

  1. AThe date of receipt of payment
  2. BThe date of issue of invoiceCorrect
  3. CThe date of completion of the service
  4. DThe earlier of the invoice date and payment date

Explanation

Where goods or services are supplied after the rate change, the invoice is issued after the change but payment is received before the change, section 14(b)(iii) fixes the time of supply as the date of issue of invoice. Using the payment date or the earlier date applies to different fact patterns.

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