Time of Supply in case of Services under GST

ALL ABOUT TIME OF SUPPLY OF SERVICES UNDER GST

As in the case of goods, in the case of supply of services, the time of supply plays an important role in determining at what time the services will be taxed under GST.

In this article, we will look at different provisions relating to time of supply in case of Services under GST.

Time of Supply when tax is payable under Forward Charge :

1. As per the provisions of Section 13(2), if the invoice is issued within the prescribed time under section 31, the time of supply of services will be earliest of :

(a) Date of issue of invoice by the supplier

(b) Date of receipt of payment (entry in books of accounts or credit in bank whichever is earlier)

2. If the invoice is not issued within the prescribed time u/s 31, the time of supply of services will be earliest of :

(a) Date of provision of service

(b) Date of receipt of payment (entry in books of accounts or credit in bank whichever is earlier)

3. If the above two events are not ascertainable, it will be the date on which the recipient of service shows the same in his books of accounts.

The time limit for issuance of an invoice in case of provision of service is within 30 days from the date of supply of service. The same is 45 days in case of banking, insurance and NBFC services.

Time of Supply when tax is payable under Reverse Charge:

In this case, the time of supply of service will be earliest of:

(a) Date of payment by the recipient

(b) 61st day from the date of issue of invoice by the supplier

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