Section Section 14 of CGST Act i.e. Change in Rate of Tax in respect of Supply of Goods or Services along with Circulars, Notifications and Amendments

Financial Year: 2017

Section 14 of CGST Act

 

Change in rate of Tax in respect of Supply of Goods or Services or Both

 

 

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 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; or

 

(ii) where the invoice has been issued prior to the change in rate of tax

but payment is received after the change in rate of tax,

the time of supply shall be the

date of issue of invoice; or

 

(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;

 

(b) in case the goods or services or both have been supplied after the change in rate of tax,––

 

(i) where the payment is received after the change in rate of tax

but the invoice has been issued prior to the change in rate of tax,

the time of supply shall be the date of receipt of payment; or

 

(ii) where the invoice has been issued and payment is received

before the change in rate of tax,

the time of supply shall be the

date of receipt of payment or

date of issue of invoice,

whichever is earlier; or

 

(iii) where the invoice has been issued after the change in rate of tax

but the payment is received before the change in rate of tax,

the time of supply shall be the date of issue of invoice

 

Provided that the date of receipt of payment shall be the date of credit in

the bank account if such credit in the bank account is after four working days

from the date of change in the rate of tax.

 

Explanation.––

 

For the purposes of this section,

“the date of receipt of payment”

shall be the date on which the payment is entered in the books of account of the supplier

or the date on which the payment is credited to his bank account,

whichever is earlier

 

Particulars	Goods and Services Supplied Before Change of Tax	Goods and Services Supplied After Change of Tax
(a) Invoice Issued Before Change and (b) Payment Received Before Change	Date of Invoice or Date of Payment whichever is earlier (Normal Rule)	Date of Invoice or Date of Payment whichever is earlier (Normal Rule)
(a) Invoice Issued After Change and (b) Payment Received Before Change	Date of Payment	Date of Issue of Invoice
(a) Invoice Issued Before Change and (b) Payment Received After Change	Date of Issue of Invoice	Date of Payment
(a) Invoice Issued After Change and (b) Payment Received After Change	Date of Invoice or Date of Payment whichever is earlier (Normal Rule)	Date of Invoice or Date of Payment whichever is earlier (Normal Rule)

 

 

 

Thanks

CA Rahul Gupta