Section 14 of CGST Act Change inrate of tax inrespect ofsupply ofgoods orservices

Section 14 of CGST Act Change inrate of tax inrespect ofsupply ofgoods orservices

CHAPTER IV

Chapter IV of the CGST Act,2017 covers four sections relating toTIME & 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 14 of CGST Act Change inrate of tax inrespect ofsupply ofgoods orservices Section 12Time of supply of goods Section 13Time of supplyof services Section 14Change inrate of tax inrespect ofsupply ofgoods orservices Section 15 Value oftaxablesupply Section 14: - Change in Rate of Tax in respect of supply of goods or services

The normal time of supply rules changes if there is a change in therate of tax of supply of goods or services. In this scenario, time ofsupply has to be determined in the following manner:

Supply is completed before the change in rate of tax

Invoice issued before the date of change in tax rate	Payment received before the date of change in tax rate	Time of supply	Applicable rate of tax
No	No	Earliest of the date of invoice or payment	New rate of tax
Yes	No	Date of issue of invoice	Old tax rate
No	Yes	Date of receipt of payment	Old tax rate

Supply is completed after the change in rate of tax

Invoice issued before the date of change in tax rate	Payment received before the date of change in tax rate	Time of supply	Applicable rate of tax
Yes	Yes	Earliest of the date of invoice or payment	Old rate of tax
Yes	No	Date of receipt of payment	New rate of tax
No	Yes	Date of issue of invoice	New rate of tax

Date of receipt of payment in case of change in rate of tax

Normally the date of receipt of payment is the date of creditin the bank account of the recipient of payment or the dateon which the payment is entered into his books of account,whichever is earlier. However, in cases of change in rate of tax,the date of receipt of payment is the date of credit in the bankaccount if such credit is after four working days from the date ofchange in rate of tax.

---

Section 14 of CGST Act Change inrate of tax inrespect ofsupply ofgoods orservices

Notwithstanding anything contained in section 12 or section 13, the time of supply,where there is a change in the rate of tax in respect of goods or services or both, shall bedetermined in the following manner, namely: (a) in case the goods or services or both have been supplied before the changein rate of tax,

(i) where the invoice for the same has been issued and the payment is alsoreceived after the change in rate of tax, the time of supply shall be the date of receipt of payment or the date of issue of invoice, whichever is earlier; or

(ii) where the invoice has been issued prior to the change in rate of tax butpayment is received after the change in rate of tax, the time of supply shall be thedate of issue of invoice; or

(iii) where the payment has been received before the change in rate of tax,but the invoice for the same is issued after the change in rate of tax, the time ofsupply shall be the date of receipt of payment;

(b) in case the goods or services or both have been supplied after the change inrate of tax,

(i) where the payment is received after the change in rate of tax but theinvoice has been issued prior to the change in rate of tax, the time of supply shallbe the date of receipt of payment; or

(ii) where the invoice has been issued and payment is received before thechange in rate of tax, the time of supply shall be the date of receipt of payment ordate of issue of invoice, whichever is earlier; or

(iii) where the invoice has been issued after the change in rate of tax butthe payment is received before the change in rate of tax, the time of supply shallbe the date of issue of invoice:

Provided that the date of receipt of payment shall be the date of credit inthe bank account if such credit in the bank account is after four working daysfrom the date of change in the rate of tax. Explanation.For the purposes of this section, the date of receipt ofpayment shall be the date on which the payment is entered in the books ofaccount of the supplier or the date on which the payment is credited to his bankaccount, whichever is earlier.