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 goods are supplied and invoice issued after change in rate in June 2017, but full advance payment was already received in April 2017?
Faq On GST (2nd Edition) Dated 31.3.2017 Chapter 5 Time of Supply
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Time of supply: new tax rate applies when supply and invoice occur after rate change despite earlier advance payment. When supply of goods and issuance of invoice occur after a notified tax rate increase, the new tax rate applies even if full advance payment was received before the increase, because the time of supply-supply and invoicing-determines the applicable tax rate.
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: new tax rate applies when supply and invoice occur after rate change despite earlier advance payment.
When supply of goods and issuance of invoice occur after a notified tax rate increase, the new tax rate applies even if full advance payment was received before the increase, because the time of supply-supply and invoicing-determines the applicable tax rate.
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