Section 13 of CGST Act Time of supply of services

CHAPTER IV

Chapter IV of the CGST Act,2017 covers four sections relating toTIME AND VALUE OF SUPPLY.The GST law has provided separate provisionsto determine the time of supply of goods and time of supply ofservices. Section 12, 13 & 14 of the Central GST Act, 2017 (CGSTAct) deals with the provisions related to time of supply and byvirtue of Section 20 of the Integrated GST Act, 2017 (IGST Act)these provisions are also applicable for the IGST Act.
Section 12Time of supply of goods
Section 13Time of supplyof services
Section 14Change inrate of tax inrespect ofsupply ofgoods orservices
Section 15 Value oftaxablesupply
In order to calculate and discharge tax liability, it is importantto know the date when the tax liability arises i.e. the date onwhich the charging event has occurred. In GST law, it is knownas Time of Supply of goods.Point oftime when supplier receives the payment or date of receipt ofpayment. The phrase the date on which supplier receives thepayment or the date of receipt of payment means the dateon which payment is entered in his books of accounts or the dateon which the payment is credited to his bank account, whicheveris earlier.
Default rule for Time of supply of services is earliest of the following dates:

• Date of issue of invoice by the supplier (If the invoice is issuedwithin the legally prescribed period under section 31(2) of theCGST Act) or the date of receipt of payment, whichever is
  earlier
• Date of provision of service (If the invoice is not issued withinthe legally prescribed period under section 31(2) of the CGSTAct) or the date of receipt of payment, whichever is earlier
• Date on which the recipient shows the receipt of service in hisbooks of account, in case the aforesaid two provisions do notapply

Section 13 of CGST Act Time of supply of services

(1) The liability to pay tax on services shall arise at the time of supply, as determinedin accordance with the provisions of this section.
(2) The time of supply of services shall be the earliest of the following dates, namely:

(a) the date of issue of invoice by the supplier, if the invoice is issued within theperiod prescribed under sub-section (2) of section 31 or the date of receipt of payment,whichever is earlier; or

(b) the date of provision of service, if the invoice is not issued within the periodprescribed under sub-section (2) of section 31 or the date of receipt of payment,whichever is earlier; or

(c) the date on which the recipient shows the receipt of services in his books ofaccount, in a case where the provisions of clause (a) or clause (b) do not apply:

Provided that where the supplier of taxable service receives an amount up to onethousand rupees in excess of the amount indicated in the tax invoice, the time ofsupply to the extent of such excess amount shall, at the option of the said supplier, bethe date of issue of invoice relating to such excess amount.
Explanation.For the purposes of clauses (a) and (b)

(i) 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;

(ii) the date of receipt of payment shall be the date on which the paymentis entered in the books of account of the supplier or the date on which thepayment is credited to his bank account, whichever is earlier.

(3) In case of supplies in respect of which tax is paid or liable to be paid on reversecharge basis, 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 thedate on which the payment is debited in his bank account, whichever is earlier; or

(b) the date immediately following sixty days from the date of issue of invoice orany other document, by whatever name called, in lieu thereof by the supplier:

Provided that where it is not possible to determine the time of supply underclause (a) or clause (b), the time of supply shall be the date of entry in the books ofaccount of the recipient of supply:
Provided further that in case of supply by associated enterprises, where thesupplier of service is located outside India, the time of supply shall be the date of entryin the books of account of the recipient of supply or the date of payment, whichever isearlier.
(4) In case of supply of vouchers by a supplier, the time of supply shall be

(a) the date of issue of voucher, if the supply is identifiable at that point; or
(b) the date of redemption of voucher, in all other cases.

(5) Where it is not possible to determine the time of supply under the provisions ofsub-section (2) or sub-section (3) or sub-section (4), the time of supply shall

(a) in a case where a periodical return has to be filed, be the date on which suchreturn is to be filed; or
(b) in any other case, be the date on which the tax is paid.

(6) The time of supply to the extent it relates to an addition in the value of supply byway of interest, late fee or penalty for delayed payment of any consideration shall be the dateon which the supplier receives such addition in value.