Time of Supply of Services under GST


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Time of supply of services

The liability to pay tax on services shall arise at the time of supply, as determined in accordance with the provisions of this section.

The time of supply of services shall be the earliest of the following dates, namely: –

(a) If the invoice is issued within the period prescribed u/s 31(2):

    • the date of issue of invoice by the supplier, or
    • the date of receipt of payment,

whichever is earlier

(b) If the invoice is not issued within the period prescribed u/s 31(2):

    • the date of provision of service, or
    • the date of receipt of payment,

whichever is earlier

(c) Where the provisions of clause (a) or clause (b) do not apply:

    • the date on which the recipient shows the receipt of services in his books of account

At the option of the Supplier Time of supply of services.

If the supplier receives an amount up to Rs. 1,000/- in excess of the invoice amount, the time of supply for the extra amount shall, at the option of the said supplier, be

  • the date of issue of invoice for such excess amount.

Explanation. – For the purposes of clauses (a) and (b)–

  1. the supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment;
  2. the date of receipt of payment shall be earlier of following dates, namely:
    • the date on which the payment is entered in the books or
    • the date on which the payment is credited to his bank account
Time of supply (for Service) under Reverse Charge (RCM)

In case of reverse charge, the time of supply shall be the earlier of the following dates, namely:

(a) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is lower; OR

(b) the date immediately after SIXTY days from the date of issue of invoice (30 days for goods)

If it is not possible to determine the time of supply under clause (a) or clause (b), the time of supply shall be the date of entry in the books of account of the recipient.

In case of associated enterprises located outside India:

In case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply shall be earliest of the following dates, namely:

  1. the date of entry in the books of account of the recipient of supply or
  2. the date of payment
Time of supply for Vouchers (for services)

In case of supply of vouchers by a supplier, the time of supply shall be-

  1. the date of issue of voucher, if the supply is identifiable at that point; or
  2. the date of redemption of voucher, in all other cases.
Time of Supply in all other cases for services (not covered in any points above)

If it is not possible to determine the time of supply by the above, then time of supply shall be–

  1. The date on which periodical return is to be filed
  2. In any other case, be the date on which the tax is paid.
Time of Supply in cases w.r.t. an addition in the value of supply

If any addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration then time of supply shall be:

  1. The date on which the supplier receives such addition in value.

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