Goods and Services Tax – GST – By: – CA Akash Phophalia – Dated:- 28-12-2016 – Introduction With the immense effort in the present service tax regime, finally the government was able to form the refined principles for determination of point of taxation of services. The government in the GST regime has tried to continue its legacy of Point of Taxation principles for identification of time of supply of services. Time of Supply of Services The provisions related to time of supply of services are contained in Section 13 of the revised Model GST Act which reads as under :- 13. Time of supply of services (1) The liability to pay CGST/SGST on services shall arise at the time of supply, as determined in terms of the provisions of this section. (2) The time of supply of services shall be the earlier of the following dates, namely:- (a) the date of issue of invoice by the supplier or the last date on which he is required, under section 28, to issue the invoice with respect to the supply; or (b)
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
payment is made, or (b) the date immediately following sixty days from the date of issue of invoice by the supplier: PROVIDED that where it is not possible to determine the time of supply under clause (a) or (b), the time of supply shall be the date of entry in the books of account of the recipient of supply: PROVIDED FURTHER that in case of 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. Explanation.- For the purpose of clause (a), the date on which the payment is made shall be the date on which the payment is entered in the books of accounts of the recipient or the date on which the payment is debited in his bank account, whichever is earlier. (4) In case of supply of vouchers, by whatever name called, by a supplier, the time of supply shall be- (a) the date of issue of voucher, if the supply is identifiable at
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
is issued and in case where the invoice is not issued then the last date on which invoice is required to be issued under section 28 of model GST Act. (b) Date of receipt of payment by supplier with respect to the supply. Here, section 28 of the Model GST Act provider for the time of issue of invoice, manner, format and the contents to be mentioned in the invoice issued in relation to supply of services. Thus as per above provisions of law the time of supply of services is the earliest of the two dates viz date of issue of invoice or the date of receipt of payment whichever is earlier. However, it may happen that the registered taxable person does not issue invoice at all, then in such case instead of taking the date of issue of invoice, the last date when the invoice should be issued in accordance with the law shall be taken. The law further provides that in case supplier receives advance beyond the amount of invoice then for an advance upto an amount of 1000 rupees the time of supply
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ion of vouchers, if supplier is not identifiable. Residual Provision Where it is not possible to determine time of supply of services under any of the above stated provision of law then it shall be calculated as – (a) in case where periodical return has to be filed, due date of filling return. (b) in case no periodical return has to be filed, date of payment of CGST/SGST. Date of Payment The meaning of date of payment for time of supply of services is explained in the said provisions itself and the same is applicable in the same sense throughout the provision. Date on which payment is made for the purposes of identification of time of supply of servcie is the earlier of the following :- (a) Book entry in the books of recipient of supply i.e. buyer (b) Debit in bank account Conclusion The government is positive in its effort to implement GST quickly and effectively. At the same time a positive move of the government to carry on the existing, simple and in practice provisions in the GST
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =