Time Of Supply VIS-A-VIS Change In GST-Rate Of Tax under GST
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The time of supply, in cases where there is a change in the effective rate of tax in respect of goods and/or services, shall be determined in the following manner:
(a) In case the taxable service has been provided before the change in effective rate of tax: |
Scenario |
Events Before
change in effective rate of tax |
Events after
change in effective
rate of tax |
Time of Supply |
1. |
Invoice issued Payment Received |
All activities before change in rate of tax |
Earlier of following:
• date of receipt of payment or
• date of issue of invoice |
2. |
Invoice issued |
Payment Received |
Date of issue of invoice |
3. |
Payment Received |
Invoice issued |
Date of receipt of payment |
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| (b) In the case of goods and services has been supplied after the change in effective rate of tax - |
Scenario |
Events Before
change in effective rate of tax |
Events after change
in effective rate of
tax |
Time of Supply |
1. |
Invoice issued |
Payment Received |
Date of receipt of payment |
2. |
Invoice issued Payment Received |
Supply is done change in effective rate |
Earlier of following:
• date of receipt of payment or
• date of issue of invoice |
3. |
Payment Received |
Invoice issued |
Date of issue of Invoice |
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“The date of receipt of payment” shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to the bank account of supplier, whichever is earlier.
The date of receipt means the date of credit in the bank account when such credit in the bank account is after four working days from the date of change in rate of tax. |
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