ॐ असतो मा सद्गमय
In terms of entry (a) to clause 6 of schedule II, the works contract in relation to
immovable property under the GST regime should be treated as supply of service. Accordingly, the same provisions as applicable to determine time of supply of services discussed above will apply to works contracts.
(ICAI FAQ PUBLICATION 06-09-2017 : Time and Value of Supply -FAQ NO. 23)
A registered taxable person supplying services, in terms of Section 31(2) of the CGST Act, 2017, shall issue the tax invoice before or after the provision of service but within a period prescribed in this behalf. Accordingly, the last date within which the invoice should be issued will be the ‘due date of issuance of invoice’. As per Rule 47 of the CGST Rules, 2017 the time limit for issuing a tax invoice is thirty days from the date of provision of service.
(ICAI FAQ PUBLICATION 06-09-2017 : Time and Value of Supply -FAQ NO. 22)
GTA is liable to pay tax on forward charge in case the recipient is ‘other than body corporate’. The condition applies to such cases where GTA pays tax on forward charge basis. When tax is paid on reverse charge basis, the recipient of GTA service would not be affected by this restriction of credit and can avail.
The GTA has an option to take ITC & go for 12% full credit for his supplies to customers who wish to get credit. Also, credit on Motor vehicles & consumables, Input services can be taken if this option is exercised.
(ICAI FAQ PUBLICATION 06-09-2017 : Exemptions on Supply of Services – FAQ NO. 42)
In case of associated enterprises located within India, the time of supply in terms of
Section 13(3) shall be the earliest of the following:
(a) Date of payment as per books of accounts of the recipient; or
(b) Date on which payment is debited in the bank account of the recipient; or
(c) Sixty days from the date of issuing invoice or any other document, by whatever
name called, in lieu thereof by the supplier; or
If it is not possible to determine the time of supply under the aforesaid clauses, the time
of supply shall be the date of entry in the books of account of the recipient of supply.
Thus, the same provisions as applicable to a supplier who is not associated enterprise
will apply for services provided by associated enterprises located in India.
Where associated enterprises is located outside India, the time of supply shall be the
earliest of the following dates:
(a) Date of entry in the books of accounts of the recipient; or
(b) Date of payment.
| Particulars | Non-associated enterprises | Associated Enterprises |
| Date on which payment is entered in books of accounts | August 14, 2017 | August 14, 2017 |
| Date on which payment is debited to bank account | August 17, 2017 | August 17, 2017 |
| Date of issuance of invoice | August 10, 2017 | August 10, 2017 |
| Sixty days from the date of issuing invoice | October 08, 2017 | October 08, 2017 |
| Date of entry in the books of accounts of the recipient | August 10, 2017 | August 10, 2017 |
| Time of supply | August 14, 2017 | August 10, 2017 |
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME FOR SUPPLY OF SERVICES: FAQ NO. 20)
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(3) of the CGST Act, 2017, the time of supply of services for remittance of tax under reverse charge mechanism shall be the earliest of the following:
(a) Date of payment recorded in the books of accounts of the recipient;
(b) Date of debit in bank account of the recipient;
(c) 60 days from the date of issue of invoice or any other document in lieu thereof by the supplier; or If it is not possible to determine the time of supply under the aforesaid clauses, the time of supply shall be the date of entry in the books of account of the recipient of supply.
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.
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME OF SUPPLY OF SERVICES: FAQ NO. 18)
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)