Page 13 - Chapter 5 TOS

Q.12
XYZ Pvt. Ltd. received legal services from ABC Consultants who is not registered under GST on
March 1, 20XX. The legal services are subject to GST under the RCM. XYZ Pvt. Ltd. issued an invoice for
the services on March 10, 20XX & supplier has not issued the invoice as it is unregistered. XYZ Pvt. Ltd.
made the payment for the legal services on May 02, 20XX. Determine Time of Supply.
What would be your answer if ABC Consultants is registered under GST & invoice is issued by it only & not
by XYZ Pvt. Ltd. on March 5, 20XX.
Answer:
Legal Provision: If supply of services is liable under reverse charge, then time of supply of services shall be the
earliest of the following dates: [Sec 13(3)]
a) Date of payment by recipient (i.e., earlier of book entry or debit to bank)
b) 61st day from supplier's invoice, in cases where invoice is required to be issued by the supplier or
c) Date of issue of invoice (Self Invoice) by the Recipient, in cases where invoice is to be issued by the recipient.
Discussion & Conclusion:
Ü In given case, ABC Consultants is not registered under GST, so it is not required to issue invoice, so condition
of 61st day from issuance of invoice by supplier is not relevant here.
Ü Thus, Time of Supply will be earlier of following:
a) Date of payment is May 02, 20XX.
b) Date of issue of invoice by XYZ Pvt. Ltd. (recipient) is March 10, 20XX.
Ü Therefore , TOS will be March 10, 20XX.
Ü In the second case, invoice is issued by ABC Consultants, So TOS will be earlier of:
a) Date of payment is May 02, 20XX
b) 61st date from the invoice issuance date by the supplier i.e May 5, 20XX
Ü Thus, TOS will be May 02, 20XX.

08: GST Payment on Spectrum Usage Services by Telecom Operators [Cir no. 222/16/2024]

Q.12.1
M/s Vijay Communication Ltd., a registered telecom operator, is planning to bid for securing the
right to use spectrum offered by the Government under the spectrum allocation model followed by
Department of Telecommunications (DoT).
Company appointed you as advisor to give advice when the liability of payment of GST will arise in the
following independent situations:
(i) In case where full upfront payment is made.
(ii) In case where deferred payment is made by the telecom operator in 18 monthly instalments.
Give your advice by explaining the relevant legal provisions with reference to the liability to pay GST, issue
of invoice and time of supply. [CA Final May 25 Exam]
Answer: The GST is to be discharged on the supply of spectrum allocation services by the recipient of services (the
telecom operator) on reverse charge basis (RCM).

i) Ü In case where full upfront payment is made by the telecom operator, GST would be payable when the
payment of the said upfront amount is made or is due, whichever is earlier.

ii) Ü In case where deferred payment is made by the telecom operator in 18 monthly instalments, supply shall
be considered as 'continuous supply of services', since the services are being supplied continuously for a
period exceeding 3 months with periodic payment obligations.
Ü Since the due date of payment is ascertainable from the contract, the invoice shall be issued on or before
such due date of payment as per the option exercised by the telecom operator.
Ü Thus, in this case, GST would be payable as and when the payments are due or made, whichever is
earlier.

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