Question 14 - 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 dated 21.9.2016 based on Draft Model GST Chapter 5 Time of Supply
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Time of Supply: Old tax rate applies where services were provided and invoiced before the rate change. Where services were provided and an invoice issued before the rate change effective 1.6.2017, the pre-change tax rate applies; payment received after the effective date does not affect the applicable rate, because the time of supply-the date of provision and invoicing-determines tax rate applicability.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Time of Supply: Old tax rate applies where services were provided and invoiced before the rate change.
Where services were provided and an invoice issued before the rate change effective 1.6.2017, the pre-change tax rate applies; payment received after the effective date does not affect the applicable rate, because the time of supply-the date of provision and invoicing-determines tax rate applicability.
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