payment after three monts

[Arun Aggarwal]

Sir

In our trade the practice of payment to the vendor is from 3 to six months and sometimes more.

I would like to know the implications of the GST in this situation.

Thanx

Arun

[KASTURI SETHI]

You may receive payment late but tax is to be paid as per the date of invoice or completion of service or the date of receipt of payment from service recrivrt, whichever is earlier.

[Arun Aggarwal]

Thanks

AI Summary

GST time of supply: tax is payable at the earlier of invoice date, service completion, or receipt of payment.
Under GST the supplier must account for tax at the time of supply, determined by the earliest of the invoice date, completion of service, or receipt of payment; delayed payment by the buyer does not postpone the supplier's obligation to discharge tax if any earlier trigger occurs.