Category: Time of Supply for Services

Yes, if the Invoice is not issued within 30 days of supply of service. Refer answer above to Q. 14.

(ICAI FAQ PUBLICATIONS 06-09-2017 TIME FOR SUPPLY OF SERVICES: FAQ NO. 19)

In terms of Section 13 of the CGST Act, 2017, the criteria to decide time of supply of services includes the date on which payment is received by the supplier. Accordingly, the service provider should remit the applicable taxes on such advances in the month in which the money is received in advance even otherwise the services are not supplied / provided.
Subsequently, when the invoice is issued with respect to the advance payments received earlier, the same shall be declared in the returns pertaining to the month in which the invoice is issued, by giving reference of the ‘Transaction ID’ generated at the time of remitting taxes on the advance payments (in the earlier tax periods).

(ICAI FAQ PUBLICATIONS 06-09-2017 TIME OF SUPPLY FOR SERVICES: FAQ NO. 17)

The provisions with respect to services in case of receipt of amount in excess of the invoice amount, are same as those applicable for goods and discussed in answer to Q. 8 above. The provisions for services are contained in proviso to Section 13(2) of the CGST Act.

(ICAI FAQ PUBLICATIONS 06-09-2017 TIME OF SUPPLY OF SERVICES: FAQ NO. 16)

The ‘date of payment’ referred in provisions relating to time of supply of services shall be the earliest of the following:
(a) date when the payment entry in relation to supply of services is recorded in books of accounts of the supplier; or
(b) date on which the payment is credited to supplier’s bank account.

(ICAI FAQ PUBLICATIONS 06-09-2017 TIME OF SUPPLY OF SERVICES: FAQ NO. 15)

In terms of Section 13 of the CGST Act, 2017 read with Section 31(2) thereof and Rule 47 of the CGST Rules, 2017, if the invoice is issued before supply of service or within a period of thirty days from the date of supply of service, the time of supply of services shall be the earliest of the following:
(a) Date of issue of invoice; or
(b) Date when the payment entry in relation to supply of services is recorded in
books of accounts of the supplier; or
(c) Date on which the payment is credited to supplier’s bank account.                      Illustration:

Date of invoice	August 31, 2017	Time of supply of services shall be August 10, 2017
Date of supply of service	August 7, 2017
Payment received by way of cheque and the entry for receipt of payment is recorded in books of accounts	August 10, 2017
Amount credited to bank account of supplier	August 12, 2017

However, if the invoice is not issued within a period of thirty days from the date of supply of service, in terms of aforesaid provisions i.e., Section 13 of the CGST Act, 2017 read with Section 31(2) thereof and Rule 47 of the CGST Rules, 2017, the time of supply of service shall be the earliest of the following:
(a) Date of provision of service; or
(b) Date when the payment entry in relation to supply of services is recorded in
books of accounts of the supplier; or
(c) Date on which the payment is credited to supplier’s bank account.                      Illustration:

Date of invoice	August 31, 2017	Time of supply of services shall be July 7, 2017
Date of supply of service	July 7, 2017
Payment received by way of cheque and the entry for receipt of payment is recorded in books of accounts	August 10, 2017
Amount credited to bank account of supplier	August 12, 2017

In a case where neither of the aforesaid provisions apply, the date on which the recipient shows the receipt of services in his books of account shall be the time of  supply of the services.

(ICAI FAQ PUBLICATIONS 06-09-2017  TIME OF SUPPLY OF SERVICES: FAQ NO. 14)