Page 10 - Chapter 5 TOS

Ü Therefore, Notification 66/2017 applies, and GST is not payable on advance.
Ü TOS = 12th September 20XX (i.e., date of issue of invoice)

2) Ü Since Lucky Streak Gaming deals in specified actionable claims, Notification 66/2017 does not apply.
Ü Thus, TOS = 4th September 20XX ( i.e date of receipt of payment)

Renudhoot Ltd. enters into a contract with XYZ Ltd. on 2nd July 2022 for a period of 2 years for
Q.9
construction of a new building - to be used for commercial purposes - for a total consideration of ₹ 150 lakh.
As per the terms of contract, Renduhoot Ltd. is required to make payment at different stages of completion
of the building namely, 50%, 75% and 100%.
Determine the time of supply using relevant details given as under:
Date of Date of issuance Date of Amount paid
Stage
Various stages of invoice payment (₹)
Initial booking 02.07.20XX 02.07.20XX 02.07.20XX 15 Lakh
50% completion of building 15.03.20YY 22.03.20YY 29.03.20YY 60 Lakh
75% completion of building 20.06.20YY 24.07.20YY 23.07.20YY 35 Lakh
100% completion of building 30.09.20YY 30.09.20YY 20.09.20YY 40 Lakh

[Study Mat]
Answer:- Legal Provision:
Ü As per section 13(2) of CGST Act, 2017, the time of supply of services shall be as follows:-

Cases Time of supply
a) If the invoice is issued within the period Time of supply shall be earlier of:-
prescribed u/s 31:- Ü the date of issue of invoice by the supplier or
Ü the date of receipt of Payment.

b) If the invoice is not issued within the period Time of supply shall be earlier of:-
prescribed u/s 31:- Ü the date of provision of service or
Ü the date of receipt of payment.

Ü As per section 31(2), generally, the tax invoice shall be issued within 30 days of supply of service.
Ü Further, As per section 31(5) of the CGST Act 2017, in case of continuous supply of services, the invoice

should be issued either
Ø on or before the due date of payment or
Ø before or at the time when the supplier of service receives the payment, if the due date of payment is not
known or
Ø on or before the date of completion of the milestone event when the payment is linked to completion of an

event
Discussion & Conclusion:
Ü In the given case, the construction services are provided under a contract for a period exceeding three months
with periodic payment obligations, such services would fall within the ambit of term “continuous supply of
services”

Ü Accordingly, the time of supply for each of the stages of completion is as follows:
Stages of Completion Time of Supply

Initial booking Ü Since invoice is issued within the 30 days, TOS will be earlier of the date of issue of
invoice or date of receipt of payment.
Ü Therefore, time of supply is 02.07.20XX

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