Time of supply for preparing Service Invoice

[Kaustubh Karandikar]

XYZ is supplying goods on rental basis where he will be charging the rent on monthly basis. If he supplies the goods say on 10^th November, when he is supposed to issue the Service Invoice? 1) Within 30 days i.e. on or before 10^th December or 2) on or before 30^th November? When he will be liable to pay GST?

[DR.MARIAPPAN GOVINDARAJAN]

Invoice may be issued either on 30th day or on the completion of month which is your choice. GST is chargeable on the issue of invoice.

[PAWAN KUMAR]

Dear Sir,

Goods supplied on 10th. Rent will be charged monthly. After complticom of service, invoice should issue within 30 days. Date of issue will be time of supply.

[KASTURI SETHI]

Dear Sir, . My views are as under :- 1. Before 10 th December. 2. Why idea of " on or before 30.11.18 " did come to your mind ? There must be some reason behind this. 3. Liability arises only after service is completed/supplied and consideration received or from the date of issue of invoice as rightly advised by Sh.Pawan Kumar.

[CASusheel Gupta]

From the query it seems that supply on rental is being made on regular basis to same person.

Is so it falls under continuous supply of services and section 31(5) is applicable.

AI Summary

Time of supply rules determine invoice issuance and GST liability for periodic rental services with continuous supply provisions applicable. For monthly rental supplies the supplier may issue the service invoice within thirty days or at the end of the month; GST is chargeable on issue of the invoice. If the arrangement is a recurring supply to the same recipient, continuous supply rules apply and periodic invoicing principles determine the time when tax becomes chargeable for each rental period.