Time of supply in case of Change in rate of GST!

Introduction

Time of supply means the point in time when goods or services are considered as supplied. The liability to pay tax on goods or services shall arise at the time of supply.

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Sections 12 and 13 of the CGST Act, 2017 cover provisions related to determining time of supply in various cases. However, when there is a change in GST rates w.e.f. a specified date, it is possible that various events discussed in above mentioned sections can happen on different dates falling before and after the date of change in GST rate.

Section 14 of the CGST Act, 2017
Section 14 of the CGST Act, 2017 states that notwithstanding anything contained in section 12 or section 13, the time of supply, where there is a change in the rate of tax in respect of goods or services or both, shall be determined in the following manner, namely:

(a) In case the goods or services or both have been supplied before the change in rate of tax.

(i) where the invoice for the same has been issued and the payment is also received after the change in the rate of tax, the time of supply shall be the date of receipt of payment or the date of issue of invoice, whichever is earlier.

(ii) where the invoice has been issued before the change in the rate of tax but payment is received after the change in the rate of tax, the time of supply shall be the date of issue of an invoice.
(iii) where the payment has been received before the change in rate of tax, but the invoice for the same is issued after the change in rate of tax, the time of supply shall be the date of receipt of payment.