The Central Goods and Services Tax Act, 2017
CHAPTER IV: TIME AND VALUE OF SUPPLY
Section 13: Time Of Supply Of Services
Bare Act
(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 is… Read the complete text with KanoonGPT Pro.
Simplified Act
When you need to pay tax on services:
You must pay tax on services when the service is supplied, based on the rules in this section.
Figuring out the timing:
The time to pay tax for a service is the earliest of the following:
- The date the invoice is issued, as long as it's within the time allowed by law, or when you receive the payment, whichever comes first;… Read the complete text with KanoonGPT Pro.
Explanation using examples
Imagine a scenario where a freelance graphic designer, named Aarav, provides design services to a company, XYZ Ltd. On March 10th, Aarav completes the project and sends an invoice to XYZ Ltd.… Read the complete text with KanoonGPT Pro.
