Saturday, 7 January 2017

Section-13. Time of supply of services

                    Section-13.                                          Time of supply of services

(1) The liability to pay CGST/SGST on services shall arise at the time of supply, as
determined in terms of the provisions of this section.

(2) The time of supply of services shall be the earlier of the following dates, namely:-

(a) the date of issue of invoice by the supplier or the last date on which he is
required, under section 28, to issue the invoice with respect to the supply; or

(b) the date on which the supplier receives the payment with respect to the supply:

PROVIDED that where the supplier of taxable service receives an amount up to
one thousand rupees in excess of the amount indicated in the tax invoice, the
time of supply to the extent of such excess shall, at the option of the said
supplier, be the date of issue of invoice.

Explanation 1.- For the purposes of clauses (a) and (b), the supply shall be
deemed to have been made to the extent it is covered by the invoice or, as the
case may be, the payment.

Explanation 2.- For the purpose of clause (b), “the date on which the supplier
receives the payment” shall be the date on which the payment is entered in his
books of accounts or the date on which the payment is credited to his bank
account, whichever is earlier.

(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse
charge basis, the time of supply shall be the earlier of the following dates,
namely-

(a) the date on which the payment is made, or
(b) the date immediately following sixty days from the date of issue of invoice by
the supplier:

PROVIDED that where it is not possible to determine the time of supply under
clause (a) or (b), the time of supply shall be the date of entry in the books of
account of the recipient of supply:

PROVIDED FURTHER that in case of ‘associated enterprises’, where the supplier
of service is located outside India, the time of supply shall be the date of entry in
the books of account of the recipient of supply or the date of payment, whichever
is earlier.

Explanation.- For the purpose of clause (a), “the date on which the payment is
made” shall be the date on which the payment is entered in the books of
accounts of the recipient or the date on which the payment is debited in his bank
account, whichever is earlier.

(4) In case of supply of vouchers, by whatever name called, by a supplier, the time
of supply shall be-

(a) the date of issue of voucher, if the supply is identifiable at that point; or
(b) the date of redemption of voucher, in all other cases;

(5) Where it is not possible to determine the time of supply of services in the manner
specified in sub-sections (2), (3) or (4), the time of supply shall

(a) in a case where a periodical return has to be filed, be the date on which such
return is to be filed; or
(b) in any other case, be the date on which the CGST/SGST is paid.


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