Time of Supply of Services :
Section 13
“(1) The liability to pay tax on services shall arise at the time of supply, as determined in 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 the period 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 period prescribed 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 of account, 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 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.”
Section 31(2) require the supplier of taxable service to issue the invoice within prescribed time limit. Rule 47 of Central Goods and Services Tax Rules, 2017 (CGST Rules for short) prescribes 30 days from the date of supply of service for it in normal cases. In case where supplier of services is an insurer or a banking company or a financial institution (it includes Non-Banking Financial Companies), 45 days from date of supply of service has been prescribed. In case any insurer or a banking company or a financial institution (it includes Non-Banking Financial Companies), a telecom operator or any other notified class of supplier of service is involved in making taxable supplies of services between distinct person as specified in Section 25, he/it may issue the invoice before recording its supplies in its books or before expiry of the quarter during which the supply was made.
“(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge 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 the date 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 or any 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 under clause
(a) or clause (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 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.”
“(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 of sub-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 such return 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 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.”