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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Supply under GST

Rate of tax on a service changed on 1 October. Sutlej Services completed the service on 20 September and issued the invoice on 25 September, before the change. Payment was received on 10 October, after the change. Under section 14, the time of supply is:

The time of supply is 25 September. The service was supplied before the rate change and the invoice was issued before the change, with payment received afterwards, so section 14 fixes the date of issue of invoice as the time of supply and the old rate applies.

  1. A10 October, date of receipt of payment
  2. B1 October, date of change in rate
  3. C20 September, date of provision of service
  4. D25 September, date of issue of invoiceCorrect

Explanation

The service was supplied before the rate change, the invoice was issued before the change and payment came after it. Section 14(a)(ii) makes the time of supply the date of issue of invoice, 25 September, so the old rate applies. Using 10 October would wrongly apply the new rate.

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