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Time of Supply of service under GST
times of supply of service under GST

Time of Supply of service under GST

Time of Supply of service under GST

  • Point of taxation means the point in time when goods have been deemed to be supplied or services have been deemed to be provided. The point of taxation enables us to determine the rate of tax, value, and due dates for payment of taxes.
  • For service, the time of supply is the earliest of date of issue of invoice by the service provider or the last day by which the service provider is required to issue invoice or the date of receipt of payment.
  • All service provider are required to issue invoice before or after provision of service or time prescribed for issuance of invoice.
  • The liability to pay CGST / SGST will arise at the time of supply as determined for goods and services. There are separate provisions for time of supply for goods and time of supply for services

Time of supply

  1. The time of supply of goods shall be the earlier of the following dates –
    The date of issuing of invoice (or the last day by which invoice should   have been issued)
    OR
  2.  The date of receipt of payment -whichever is earlier

If the supplier receives an amount up to Rs. 1000 in excess of the invoice amount, the time of supply for the extra amount shall be the date of issue of invoice (at the option of the supplier).

For (1) and (2)- The supply shall be assumed to have been made to the extent it is covered by the invoice or the payment (as the case may be).

For (b)- the date of receipt of payment shall be earlier of-
1. The date on which he entered the payment in his books
OR
2. The date on which the payment is credited to his bank account

 

Export of service shall mean supply of any service when:

  • The supplier of service is located in India.
  •  Recipient of service is located outside India.
  • Place of supply of service is outside India.
  • Payment for such service is received by supplier of such service in convertible foreign exchange.
  •  Supplier of service and recipient of service are not branch office or agency or representational office of the supplier of service.

Import of service shall mean supply of any service where:

  • Supplier of service is located outside India;
  • Recipient of service is located in India; and
  • Place of supply of service is in India.

 

Interstate supply of services:

  • Subject to provisions of Section 9, Interstate supply of services means any supply where the location of the supplier and the place of supply are in different states.

 

Following transactions will be treated as Interstate supply of services:

  • Supply of services in the course of import into India.
  • Supply of services when the supplier is located in India and the Place of supply is located outside India.
  • Supply of services to or by a SEZ developer or a SEZ unit.

 

Supply of services in the course of interstate trade or commerce.

  • Subject to provisions of Section 9, intra state supply of services means any supply of services wherein the location the supplier and the place of supply are in the same state.
  • It can be seen from the above that determination of place of supply of service will play a key role in determining whether the supply of service is an intra-state supply, interstate supply, export or import of services.

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