ॐ असतो मा सद्गमय
If the invoices is also raised before the change in rate of tax then the old rate will be applicable even though the supply is complete after the change in rate of tax. Else, the new rate will be applicable.
(ICAI FAQ PUBLICATION 06-09-2017 : Time and Value of Supply -FAQ NO. 32)
The date of receipt of payment is date of entry in the books of the supplier or date of credit in his bank account, whichever is earlier.
(ICAI FAQ PUBLICATION 06-09-2017 : Time and Value of Supply -FAQ NO. 31)
Three important events need to be considered – Date of raising invoice, receipt of payment and completion of supply. If any of the two events occur before the change in rate of tax then the old rate will apply else the new rate will apply.
(ICAI FAQ PUBLICATION 06-09-2017 : Time and Value of Supply -FAQ NO. 30)
In terms of Section 13(6) of the CGST Act, 2017 the date on which the supplier receives interest, penalty or late fee which forms part of value will be the time of supply.
(ICAI FAQ PUBLICATION 06-09-2017 : Time and Value of Supply -FAQ NO. 26)
‘Continuous supply of services’ in terms of Section 2(33) of the CGST Act, 2017 means supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding three months with periodic payment obligations and includes supply of such service as the Government may, subject to such conditions, as it may, by notification, specify.
In terms of provisions of Section 31(5) –
(a) Where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment.
(b) Where the due date for payment is not ascertainable from the contract, the
invoice shall be issued before or at the time when the supplier of service receives the payment.
(c) Where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that event.
The time of supply will be the date by which the invoice is actually issued or is required to be issued under the above provisions (a) and (c) or the date of receipt of payment (earlier of entry in books of account / credit in bank account), whichever is earliest.
(ICAI FAQ PUBLICATION 06-09-2017 : Time and Value of Supply -FAQ NO. 26)
In terms of Section 2(74) of the CGST Act, 2017 ‘mixed supply’ means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply. The illustration appended to the definition of ‘mixed supply’ reads as follows:
A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drink and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately. Section 8(b) provides that the mixed supply whether involves supply of goods or services shall be ascertained on the basis of a particular supply forming part of the mixed supply which attracts highest rate of tax. In other words, the mixed supply, if involves supply of any service liable to tax at the higher rate than any goods covered therein, such mixed supply would qualify as supply of services and accordingly the provisions relating to time of supply of services would be applicable. Alternatively, the mixed supply, if involves supply of any goods liable to tax at the higher rate than services covered therein, such mixed supply would qualify as supply of goods and
accordingly the provisions relating to time of supply of goods would be applicable.
E.g.: During an exhibition, the package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drink and fruit juices are supplied by the organizer of exhibition. This would qualify as mixed supply since exhibition of services and other goods are supplied in conjunction. The rate of tax applicable (presumed) to each of the
goods and services:
(Review Illustration)
Exhibition services – 18%
Dry fruits and fruit juices – 5%
Canned foods, sweets, chocolates, cakes and aerated drink – 12%
Nature of supply (highest rate) Supply of services – 18%
(ICAI FAQ PUBLICATION 06-09-2017 : Time and Value of Supply -FAQ NO. 25)
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)
Yes, serial no 11, 49 and 54 are missing in Notification 12/2017-Central Tax(Rate) compared to Notification 8/2017-Integrated Tax (Rate) dated June 28, 2017 because these entries relate to supplies that are always in the nature of inter-State and can never be intra-State supplies.
(ICAI FAQ PUBLICATION 06-09-2017 : Exemptions on Supply of Services – FAQ NO. 40)