A. General Rule:
A taxable person supplying services can issue an invoice before or after the provision of services within prescribed time. The invoice rules prescribe a time limit of 30 days from the date of provision of services for issuance of invoice. The Invoice shall be showing the description, Value and tax charged apart from prescribed details.
The Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which—
a) any other document issued in relation to the supply shall be deemed to be a tax invoice; or
b) tax invoice may not be issued.
B. Issuance of invoice in case of continuous supply of services
Continuous supply of services is defined under section 2(33) of CGST Act as:
“continuous supply of services” means a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding three months with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify.
The example of continuous supply of services can be the telephone or internet connection. It is not necessary that services shall be on continuous basis. They can be on recurrent basis also. For example a home tutor who visits for two days in a week to teach any subject will also be covered by the continuous supply of service. In case of continuous supply of services,—
a) where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment;
b) where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment;
c) where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that event.
C. Invoice for incomplete services:
In a case where the supply of services ceases under a contract before the completion of the supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such cessation. |
