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TMI BlogTime of Supply of Services – Forward Charge [ Section 13(2) of CGST Act ]X X X X Extracts X X X X X X X X Extracts X X X X ..... he invoice is issued within the time prescribed under section 31. In case of taxable supplies of services The invoice shall be issued within a period of 30 days from the date of the supply of service: Where the supplier of services is insurance companies/ banking companies/ financial institutions including NBFCs the period within which tax invoice need to be issue within 45 days from the date of supply of service. [first proviso rule 47 of CGST Rules ]. In case of insurance companies / banking companies / financial institutions including NBFCs / telecom companies / notified supplier of services making taxable supplies between distinct persons as specified in section 25, invoice may be issued before or at the time of recording such supply in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt b) If invoice not issued within time under section 31 of CGST Act 2017, Earliest of the following date The date of provision of service or Date of receipt of payment, to the extent the payment covers the supply of services, (whichever is earlier) Date of entry in the books of accounts, or Credit date in the bank account c) In a case aforesaid above two provisions do not apply , then Date on which recipient shows the receipt of service in his books of account, Significance of to the extent the payment covers the services Suppose a part of the consideration is paid in advance or invoice is issued for part payment, the time of supply will not cover the full supply. The supply shall be deemed to have been made to the extent it is covered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct . Issue - In cases of spectrum allocation where the successful bidder (i.e. the telecom operator ) opts for making payments in instalments as mentioned in the Notice Inviting Application (NIA) and Frequency Assignment Letter (FAL) issued by Department of Telecommunications (DoT), Government of India, what will be the time of supply for the purpose of payment of GST on the said supply of spectrum allocation services. [ Circular No.-222/16/2024-GST dated 26.06.2024 ] Clarification - it is clarified that in case where full upfront payment is made by the telecom operator , GST would be payable when the payment of the said upfront amount is made or is due, whichever is earlier, whereas in case where deferred payment is made by the telecom ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f services, is earlier of the following dates: - a) If invoice issued within time under section 31(5) , Earliest of the following dates Date of issues of invoice or Date of receipt of payment, to the extent the payment covers the supply of services b) If invoice not issued within time under section 31(5) , Earliest of the following dates The date of provision of service or Date of receipt of payment, to the extent the payment covers the supply of services. The present case, the construction services are provided under contract for a period of more than 3 months with periodic payment obligation, such services would fall within the ambit of continuous supply of services Accordingly, the time of supply with respect to each of the stage of comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 30 days of supply of services. In the given case, where the invoice is not issued within the prescribed time as per section 31 of CGST Act 2017, time of supply of services, earliest of following dates Date of provision of services or Date of receipt of payment, Time of supply In case or advance receipt Therefore, the time of supply of services to the extent of ₹. 3,000/- is Date of provision of services 15 th September Date of receipt of payment 6 th May 6 th May as the date of payment of ₹3,000/- is earlier than the date of provision of services. The time of supply of services to the extent of the balance ₹12,000/- is the 15 th September, which the date of provision of services Therefore, the time of supply of services ..... X X X X Extracts X X X X X X X X Extracts X X X X
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