Time of Supply AFTER modification in rate of tax. Examine Arrangements for Time of Supply in case of modification in rate of tax. GST is among the most significant tax reforms in India intending to incorporate State economies and enhance total development by producing a single, unified Indian market to make the economy more powerful. GST is an extensive location based indirect tax levy of products along with services at the nationwide level. Its primary goal is to combine several indirect tax levies into a single tax therefore subsuming a variety of tax levies, conquering the restrictions of existing indirect tax structure, and developing performances in tax administration.
Area 14 of the CGST Act, 2017 mentions that the time of supply, where there is a modification in the rate of tax in regard of items or services or both. In case the items or services or both have actually been provided after the modification in rate of tax, the time of supply can be figured out as follow
- 1) where the billing for the very same has actually been provided and the payment is likewise gotten after the modification in rate of tax, the time of supply will be the date of invoice of payment or the date of problem of billing, whichever is previously; or
- 2) where the billing has actually been provided prior to the modification in rate of tax however payment is gotten after the modification in rate of tax, the time of supply will be the date of concern of billing; or
- 3) where the payment has actually been gotten prior to the modification in rate of tax, however the billing for the very same is provided after the modification in rate of tax, the time of supply will be the date of invoice of payment
” The date of invoice of payment” will be the date on which the payment is gone into in the books of account of the provider or the date on which the payment is credited to his savings account, whichever is previously.
B. In case the items or services or both have actually been provided after the modification in rate of tax, the time of supply can be identified as follows:
- 1) where the payment is gotten after the modification in rate of tax however the billing has actually been provided prior to the modification in rate of tax, the time of supply will be the date of invoice of payment; or
- 2) where the billing has actually been provided and payment is gotten prior to the modification in rate of tax, the time of supply will be the date of invoice of payment or date of problem of billing, whichever is previously; or
- 3) where the billing has actually been provided after the modification in rate of tax however the payment is gotten prior to the modification in rate of tax, the time of supply will be the date of problem of billing:
Offered that the date of invoice of payment will be the date of credit in the savings account if such credit in the savings account seeks 4 working days from the date of modification in the rate of tax.
” the date of invoice of payment” will be the date on which the payment is gone into in the books of account of the provider or the date on which the payment is credited to his checking account, whichever is previously.
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