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

Services are supplied after the rate of tax has changed. The supplier issued an invoice before the rate change, and the payment was received after the rate change. Under section 14 of the CGST Act, 2017, the time of supply is:

The time of supply is the date of receipt of payment. Because the services were supplied after the rate change and the payment came after the change, the earlier invoice does not fix the time of supply, so the new rate applies.

  1. ADate of issue of invoice
  2. BEarlier of invoice date and payment date
  3. CDate of receipt of paymentCorrect
  4. DDate of completion of the services

Explanation

For supplies made after the rate change, where payment is received after the change although the invoice was issued before it, the time of supply is the date of receipt of payment. The invoice date is the answer only where the invoice is issued after the change and payment is received before it.

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