Time of supply of Insurance services if Advances/ bank guarantee received : CBIC Clarify

By | June 4, 2018
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(Last Updated On: June 4, 2018)

What is the time of supply of  services for deposits and advances  in cases of the recipient issuing a  bank guarantee or making a deposit before assumption of risk and issuance of a policy?

As per the proviso to Section 2(31) of the CGST Act, 2017, a deposit given in  respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply.

In case of advances, however, the time of supply is the time of receipt of advance as provided in section 13(2)(a) of the CGST Act, 2017.

 

Q 74 of GST FAQs on Financial Services Sector published by CBIC

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