Supply of Service – Under Indian GST Under GST, supply includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. In this article, we look at the applicability of GST on supply of service. Supply of Service The liability to pay Central GST or State GST on services would arise at the time of supply. As per GST regulations, the time of supply of services shall be: The date of issue of invoice or the date of receipt of payment, whichever is earlier, if the invoice is issued within the prescribed period; The date of completion of the provision of service or the date of receipt of payment, whichever is earlier, if the invoice is not issued within the prescribed period; 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 (b) do not apply. Under GST, the supply would be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment. Further, the date of receipt of payment would be the date on which the payment is entered in the books of accounts of the supplier or the date on which the payment is credited to his bank account, whichever is earlier. Continuous Supply of Service In case of continuous supply of services, the time of supply shall be: Where the due date of payment is ascertainable from the contract, the date on which the payment is liable to be made by the recipient of service, whether or not any invoice has been issued or any payment has been received by the supplier of service; Where the due date of payment is not ascertainable from the contract, each such time when the supplier of service receives the payment, or issues an invoice, whichever is earlier; Where the payment is linked to the completion of an event, the time of completion of that event; 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 earliest of the following dates, namely: The date of receipt of services, or The date on which the payment is made, or The date of receipt of invoice, or The date of debit in the books of accounts. If it is not possible to determine the time of supply of services, then the time of supply would be when a periodical GST return has to be filed or the date on which the Central GST or State GST is paid.
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