Time of supply for preparing Service Invoice

[Kaustubh Karandikar]

XYZ issued Service Invoice towards rental charges for laboratory equipment. The period contract is for the period 31.07.2018 to 02.11.2018 and the Invoice for the same is issued on 01.12.2018. Is it in line with the provisions under GST? If not, on which date invoice was required to be issued?

[Rajagopalan Ranganathan]

Sir,

According to rule 47 of Central Goods and Service Tax Rules, 2017 "the invoice referred to in rule 46, in the case of the taxable supply of services, shall be issued within a period of thirty days from the date of the supply of service. Therefore the invoice is to be issued within 30 days from the date of provision of service during the contract period of 31.7.2018 to 02.11.2018.

[Alkesh Jani]

Sir,

With regards to your query, additional information is required, such as, what is the payment condition as per contract?

With Regards,

AI Summary

Time of supply: service invoices must be issued within thirty days of supply, subject to contract payment terms. An invoice for a taxable supply of services must be issued within the statutory short period measured from the date the service is provided; for a contract spanning 31.07.2018 to 02.11.2018 invoices therefore must be issued within that period following provision of each service. Invoice issuance within thirty days of the supply of services is the operative requirement, and contract payment terms may affect billing practice.