Last date for GST Tax Invoice for Services

Here we have discussed due date / Last date for GST Tax Invoice for Services

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When should Tax invoice be issued under GST act for supply of Services ?

Tax invoice .

Relevant Portion of Section 31 (2 ) of CGST Act 2017

A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as may be prescribed:

The invoice referred to in rule 46, in the case of the taxable supply of services, shall be issued within a period of 30 days from the date of the supply of service: [ Rule 47 of CGST Rules 2017 Time limit for issuing tax invoice]

where the supplier of services is an insurer or a banking company or a financial institution, including a non-banking financial company, the period within which the invoice or any document in lieu thereof is to be issued shall be  45 days from the date of the supply of service: [ Rule 47 of CGST Rules 2017 Time limit for issuing tax invoice]

An insurer or a banking company or a financial institution, including a non-banking financial company, or a telecom operator, or any other class of supplier of services as may be notified by the Government on the recommendations of the Council, making taxable supplies of services between distinct persons as specified in section 25, may issue the invoice before or at the time such supplier records the same in his books of account or before the expiry of the quarter during which the supply was made.[ Rule 47 of CGST Rules 2017 Time limit for issuing tax invoice]

When should Tax invoice be issued under GST act for Continues supply of Services ?

“continuous supply of services” means a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding three months with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify; [ section 2(32) of CGST Act ]

For Example (Continuous Supply of Service : exceeding 3 months)

* Supply of Service under Annual Maintenance Contract

* Renting of Immovable Property

* Software license  etc

Relevant Portion of Section 31 (5 ) of CGST Act 2017 of Tax invoice .

……In case of continuous supply of services,—

(a) where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment;

(b) where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment;

(c) where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that event.

[Example : In case of construction contracts, various milestones (like plinth, first floor, slab etc.) may be prescribed for payments. In that case, tax invoice is required to be issued when each such milestone is reached. ]

When should Tax invoice be issued under GST act if Services ceases before completion of supply ?

In a case where the supply of services ceases under a contract before the completion of the supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply effected before such cessation – section 31(6) of CGST Act.

Comment by CA Satbir singh :- For example, a Service  Contract starting on 1st April 2018 was due for completion in March 2019. But it was stopped on 11th May 2018. The contractor will issue an invoice on 11th May 2018 to the extent of work performed.

How to ensure timely issue of GST Tax Invoice for Services

You can maintain the following checklist in Excel format in computer or in register

Tax Invoice Checklist of Services

Refer GST Tax Invoice : Free Study Material