time of supply for works comtracts

[giri gattupalli]

respected sir what is the time of supply for a govt works contractor for canal work running over one yer

thanking you

[KASTURI SETHI]

Relevant extract of C.B.E. & C. Flyer No. 13, dated 1-1-2018

Invoice in case of continuous supply of services

In case of continuous supply of services, where,

(a) the due date of payment is ascertainable from the contract; the invoice shall be issued on or before the due date of payment;

(b) the due date of payment is not ascertainable from the contract; the invoice shall be issued before or at the time when the supplier of service receives the payment;

(c) the payment is linked to the completion of an event; the invoice shall be issued on or before the date of completion of that event.

Issue of invoice in case, where supply of service ceases under a contract before completion of supply

In a case where the supply of services ceases under a contract before the completion of the supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such cessation.

[Ganeshan Kalyani]

Advance received towards the service is subject to GST.

[Surabhi Parihar]

In case of continuous supply of services, the time of supply shall be -

(i) Where the due date of payment is ascertainable from the contract: The date on which the payment is liable to be made by the service receiver, whether or not any invoice has been issued or any payment has been received by the supplier of service;

(ii) Where the due date of payment is not ascertainable from the contract: When the supplier of service receives the payment, or issues an invoice, whichever is earlier;

(iii) Where the payment is linked to the completion of an event: The time of completion of that event;

AI Summary

Understanding Time of Supply for Government Works Contractor under GST: Invoices, Advance Payments, and Contract Terms Explained A query was raised regarding the time of supply for a government works contractor under the Goods and Services Tax (GST) for a canal project spanning over a year. Three responses were provided. The first response referenced C.B.E. & C. guidelines, explaining that invoices for continuous supply of services should be issued based on the due date of payment, receipt of payment, or completion of an event. The second response noted that advance payments are subject to GST. The third response reiterated the conditions for determining the time of supply based on contract terms, payment receipt, or event completion.