How is the Time of Supply of Services fixed as per GST Scheme ?

The Time of Supply is also well defined for the services sector too. The liability to pay tax on services shall arise at the time of supply, as determined according to relevant conditions. In each of the cases, the Time of Supply shall be the earliest date applicable as per conditions.

When  the supplier of taxable service receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall (at the option of the said supplier) be the date of issue of invoice relating to such excess amount.

The supply shall be deemed to have been made to the extent it is covered by the invoice or the payment. The date of receipt of payment shall be the date on which the payment is entered in the books of account of  the supplier or the date on which the payment is credited to his bank account, whichever is earlier.

Similarly, for supplies on which the tax becomes payable on Reverse charge basis, the following rules become applicable. The Time of Supply shall be the earliest date applicable as per conditions.

When it is not possible to determine the time of supply by the above mentioned criteria,  the time of supply shall be the date of entry in the books of account of the recipient of supply.

In case of supply by 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.

For supply of vouchers by a supplier for services, the following rules become applicable. The Time of Supply shall be the earliest date applicable as per conditions.

When  it is not possible to determine the time of supply under any of the conditions or cases listed above, the time of supply shall be one of the following:

·         The date on which periodical return is to be filed

·         The date on which the tax is paid.

The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.

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