How is changes in rate of GST accounted for Tax assessment?
Example 1. The taxable service has been provided on 15th January. The rate of changes in GST tax effected on 16th January. Invoice for the said service has been issued on 17th January. The payment against the said transaction has received on 18th January. How is GST rate accounted?
In case the taxable service has been provided before the change in effective rate of tax where the invoice for the same has been issued and the payment is also received after the change in effective 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.
Example 2. The taxable service has been provided on 15th January. The rate of changes in GST tax effected on 16th January. GST Tax invoice has been issued on 14th January. Payment received on 17th January. How is GST Tax calculated?
In case the taxable service has been provided before the change in effective rate of tax where the invoice has been issued prior to change in effective rate of tax but the payment is received after the change in effective rate of tax, the time of supply shall be the date of issue of invoice.
Example 3. The taxable service has been provided on 15th January. The rate of changes in GST tax effected on 16th January. Payment of the said supply has been received on 15th January. But the GST tax invoice has been issued on 17th January. How is the time of supply accounted to derive GST tax?
In case the taxable service has been provided before the change in effective rate of tax where the payment is received before the change in effective rate of tax, but the invoice for the same has been issued after the change in effective rate of tax, the time of supply shall be the date of receipt of payment.
Example 4. The taxable service has been provided on 15th January. The rate of changes in GST tax effected on 14th January. Payment against this supply received on 16th January. GST Tax Invoice has been issued on 13th January. How is time of supply accounted to calculate GST tax rate?
In case the taxable service has been provided after the change in effective rate of tax where the payment is received after the change in effective rate of tax but the invoice has been issued prior to the change in effective rate of tax, the time of supply shall be the date of receipt of payment.
Example 5. The taxable service has been provided on 15th January. However, the rate of changes in GST tax effected on 14th January. GST Tax invoice has been issued on 12th January and the payment under the said supply has been received on 13th January. How is GST Tax rate calculated?
In case the taxable service has been provided after the change in effective rate of tax where the invoice has been issued and the payment is received before the change in effective rate of tax, the time of supply shall be the date of receipt of payment or date of issue of invoice, whichever is earlier
Example 6. The taxable service has been provided on 15th January. However, the rate of changes in GST tax effected on 14th January. GST Tax Invoice has been issued on 15th January. Payment under this transaction received on 13th January. How is GST rate calculated against this supply?
In case the taxable service has been provided after the change in effective rate of tax where the invoice has been issued after the change in effective rate of tax but the payment is received before the change in effective rate of tax, the time of supply shall be the date of issue of invoice.
How does the date of receipt of payment of GST defined under GST Act?
The date of receipt of payment shall be the date on which the payment is entered in the books of accounts of the supplier or the date on which the payment is credited to his bank account, whichever is earlier: Provided that the date of receipt of payment shall be the date of credit in the bank account when such credit in the bank account is after four working days from the date of change in the effective rate of tax.
An extract of government information on changes in rate of GST tax is quoted below for further understanding:
“ Change in rate of tax in respect of supply of services (1) Notwithstanding anything contained in section 13, the time of supply, in cases where there is a change in the effective rate of tax in respect of services, shall be determined in the following manner, namely:- (a) in case the taxable service has been provided before the change in effective rate of tax – (i) where the invoice for the same has been issued and the payment is also received after the change in effective 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 change in effective rate of tax but the payment is received after the change in effective rate of tax, the time of supply shall be the date of issue of invoice; or (iii) where the payment is received before the change in effective rate of tax, but the invoice for the same has been issued after the change in effective rate of tax, the time of supply shall be the date of receipt of payment; (b) in case the taxable service has been provided after the change in effective rate of tax - (i) where the payment is received after the change in effective rate of tax but the invoice has been issued prior to the change in effective rate of tax, the time of supply shall be the date of receipt of payment; or (ii) where the invoice has been issued and the payment is received before the change in effective 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 effective rate of tax but the payment is received before the change in effective rate of tax, the time of supply shall be the date of issue of invoice. Explanation. - For the purpose of this section, “the date of receipt of payment” shall be the date on which the payment is entered in the books of accounts of the supplier or the date on which the payment is credited to his bank account, whichever is earlier: Provided that the date of receipt of payment shall be the date of credit in the bank account when such credit in the bank account is after four working days from the date of change in the effective rate of tax.”
Click here to know GST rate on Goods and Services
GST Exemption list of goods and services
Find HSN number or Service tariff code for GST
GST registration guidelines
Indian GST Laws
How to export your goods?
How many digits in GSTIN under Goods and Service Tax registration
Would multiple registration be allowed under Goods and Service Tax (GSTIN)?
Procedure for obtaining Registration number of GSTIN
Procedures to get GST Registration number for IT exempted proprietorship firms.
Process of application for registration under GST Act to obtain GSTIN
Different application Forms for registration under Goods and Service Tax Act (GSTIN)
Application for registration under GST Act to obtain GSTIN
GST registration and returns filing procedures for PSUs and Government entities
Re-registration of GST, Goods and Service Tax.
Cancellation of registration of GST
Procedures to claim reduction in output tax liability of GST in India
Procedures to claim Input Tax Credit under GST in India
When to file first Return of GST tax in India?
GST Tax returns filing – Who, How and When?
How is time of supply accounted under GST Tax Calculation
Valuation of GST under special cases
Valuation of GST Taxable supply
When to pay GST for supply of services?
PRECAUTIONS TO BE TAKEN WHILE USING CONTAINERS FOR EXPORTS
Printing machine error with customs – Un able to hand over documents to carrier.
Procedure and Documentation for Filing Claim of Marine Insurance.
What is VACIS exam in US import customs clearance
When can an exporter release bill of lading from shipping company?
When does exporter get EP copy of shipping bill after customs clearance
Procedure for Central Excise Clearance Under Claim of Rebate
Procedure to claim Duty Drawback
Procedures and documentation on Triangular shipments
Procedures for Re-imports
Transhipment - A redefinition
Travelers to India under import duty exemption, Frequently Asked Questions Part 2
Triangular export
Triangular shipment
Types of Insurance Documents.
Import General Manifest (IGM)
Importance of Bill of Lading
Introduction to this web site.
Is Airway bill a documents of title?
Is Customs House Agents (CHA ) required to be appointed mandatory?
Is DP terms of payment safe in export business?
Is Letter of Credit LC safe for an Importer?
Is ON BOARD CERTIFICATE required for LC negotiation
What is Rummaging