When to issue Tax Invoice in case of continuous supply of services under GST

By | March 14, 2017
(Last Updated On: March 14, 2017)

Query When to issue Tax Invoice in case of continuous supply of services under GST?

Answer: Issue of Tax Invoice under GST in case of continuous supply of services will depend on three conditions  :-

  1. Due date of payment is ascertainable from the contract : The invoice shall be issued before or after the payment is liable to be made by the recipient but within a period prescribed in this behalf whether or not any payment has been received by the supplier of the service;
  2. Due date of payment is not ascertainable from the contract : The invoice shall be issued before or after each such time when the supplier of service receives the payment but within a period prescribed in this behalf;
  3. Payment is linked to the completion of an event :- the invoice shall be issued before or after the time of completion of that event but within a period prescribed in this behalf. 

Relevant Extract of Section 28 –Tax invoice of Revised Model GST Law

(5) In case of continuous supply of services,

(a) where the due date of payment is ascertainable from the contract, the invoice shall be issued before or after the payment is liable to be made by the recipient but within a period prescribed in this behalf whether or not any payment has been received by the supplier of the service;

(b) where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or after each such time when the supplier of service receives the payment but within a period prescribed in this behalf;

(c) where the payment is linked to the completion of an event, the invoice shall be issued before or after the time of completion of that event but within a period prescribed in this behalf. 

(6) 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.

(7) For the purposes of sub section (4) and (5), the Central or a State Government may on the recommendation of the Council, specify, by notification, the supply of goods or services that shall be treated as continuous supply of goods or services.

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