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

Goods are supplied after the rate of tax changes. The supplier issued the invoice before the change in rate, but received payment after the change in rate. Under section 14 of the CGST Act, 2017, what is the time of supply?

The time of supply is the date of receipt of payment. Where goods are supplied after the change in rate, and the invoice was issued before the change but payment was received after it, section 14 fixes the payment date.

  1. AThe date of issue of invoice
  2. BThe date of receipt of paymentCorrect
  3. CThe date of supply of goods
  4. DThe earlier of the invoice date and the payment date

Explanation

Section 14(b)(i) covers supply after the rate change, with invoice before the change and payment after it. The time of supply is the date of receipt of payment. The invoice date applies where supply was before the change and the invoice was issued before it but payment came after, which is a different case.

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