Change in rate of tax in respect of supply of goods or services
Provisions in Revised Model GST Law regarding Change in rate of tax in respect of supply of goods or services
Section 14 of Revised Model GST Law provides as follow :-
14. Change in rate of tax in respect of supply of goods or services
| Goods or Service supplied | Payment received | Invoice Issued | Time of Supply |
| Prior to Rate Change | After Rate Change | After Rate Change | Date of receipt of payment or the date of issue of invoice, whichever is earlier |
| Prior to Rate Change | After Rate Change | Prior to Rate Change | Date of issue of invoice, |
| Prior to Rate Change | Prior to Rate Change | After Rate Change | Date of receipt of payment |
| After Rate Change | Prior to Rate Change | After Rate Change | Date of issue of invoice |
| After Rate Change | After Rate Change | Prior to Rate Change | Date of receipt of payment |
| After Rate Change | Prior to Rate Change | Prior to Rate Change | Date of receipt of payment or the date of issue of invoice, whichever is earlier |
Issue regarding Change in rate of tax in respect of supply of goods or services
The time of supply in cases of supply of Goods service has been provided before change in rate of tax
the time of supply is determined on the basis on date of payment or invoice. This contradicts with charging section 8 where levy is on supply. This is diametrically opposite to the law laid down by the Hon’ble Supreme Court in the case of Vazir Sultan Tobacco which says that Excise duty was on manufacture only only its collection was deferred at the time of removal of Goods.
Suggestions regarding Change in rate of tax in respect of supply of goods or services
If the supply of goods or services has been done before the change in the rate of Tax, then GST Tax should be collected at rate in force before the change in rates.
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