Question 13 - Let’s say there was increase in tax rate from 18% to 20% w.e.f.1.6.2017. What is the tax rate applicable when services provided and invoice issued before change in rate in April 2017, but payment received after change in rate in June 2017?
Faq On GST (2nd Edition) Dated 31.3.2017 Chapter 5 Time of Supply
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Time of Supply determines applicable GST rate; services supplied and invoiced before rate change attract old rate despite later payment. Where services were rendered and an invoice issued prior to a notified tax-rate change, the Time of Supply controls rate determination; the tax rate in ... Summary
Time of Supply determines applicable GST rate; services supplied and invoiced before rate change attract old rate despite later payment.
Where services were rendered and an invoice issued prior to a notified tax-rate change, the Time of Supply controls rate determination; the tax rate in force at that time applies to the transaction, and later receipt of payment after the rate change does not alter the applicable earlier rate.
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