2023 (10) TMI 471 - AAR - GST

Time of supply of the work executed from September 2010 to June 2017 - Issuance of tax invoice - works contractor executing works for the State Government - HELD THAT - The Applicant has received consideration for the works executed by him prior to the appointed day i.e., 01-07-2017 due to upward revision. Therefore this situation falls under clause (a) of sub sec (2) of sec (142) of the CGST Act 2017. The time of supply is the date on which such consideration is received as enumerated under Section 13(c)(a) of the CGST Act - The applicant shall receive a supplementary invoice or payment debit note, within thirty days of such price revision and such supplementary invoice or debit note shall be deemed to have been issued in respect of an outward supply made under CGST/SGST Acts.

Summary

Issues involved:
The case involves determining the time of supply and issuing tax invoices for work executed from September 2010 to June 2017.

Time of Supply:
The applicant, a works contractor, executed a project for the State Government, involving tunnel construction. Due to changes in site conditions, rates were revised by the Government. The applicant sought clarification on the time of supply for work done from September 2010 to June 2017. The Authority ruled that the time of supply is the date on which the consideration/payment for the revised rates is received, as per Section 13(c)(a) of the CGST Act.

Tax Invoice Issuance:
Following the rate revision, the applicant needed guidance on issuing tax invoices in this scenario. The Authority highlighted that as per Section 142(2)(a) of the CGST Act, any amount received due to price revision under a contract entered before the appointed day is deemed to be towards a supply under the Act. Thus, the applicant should issue a supplementary invoice or debit note within thirty days of the price revision, which will be considered as issued for an outward supply under the CGST/SGST Acts.