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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
May 4, 2020
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
