TaxTMI 
TaxTMI 
GST on Uncertain Revenue
X X X X Extracts X X X X
X X X X Extracts X X X X
....ST on Uncertain Revenue<br> Query (Issue) Started By: - CAPurnima Bothra Dated:- 9-7-2018 Last Reply Date:- 10-7-2018 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>Case Study: Lessor has raised demand note asking lease rental for the whole year.However lessee has moved to court and is not ready to pay any dues.Now in this scenario Lessor is paying GST out of his pocket as no amount is r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecoverable from the lessee which leading to huge cash blockage at this moment. Can GST amount be escaped/defered on uncertain revenue and be paid once the revenue becomes certain. Reply By KASTURI SETHI: The Reply: You can decide according to the definition of 'Time of supply' as per details given below:- 13. Time of supply of services. - (1) The liability to pay tax on serv....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ices shall arise at the time of supply, as determined in accordance with the provisions of this section. (2) The time of supply of services shall be the earliest of the following dates, namely :- (a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ier; or (b) the date of provision of service, if the invoice is not issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or (c) the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not apply : Provided that where th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e supplier of taxable service receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice relating to such excess amount. If you have issued invoice, liability arises in the following month. If no invoice is issued, then the time....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of supply is the date of receipt of payment. Reply By Alkesh Jani: The Reply: Sir/Madam, Please consult your Advocate seeking the interim order from the court to get gst amount from the party, till the final order. Also check Section 92 is applicable or not. Our experts may correct me if mistaken Thanks Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: I endorse the views of Shri Sethi. Repl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y By Ganeshan Kalyani: The Reply: You have not received the payment so the completion of service is the point of taxation. GST is payable by you on completion of service. Assuming that you would have received payment on monthly basis then gst is payable on subsequent month. Reply By KASTURI SETHI: The Reply: Invoices must have been raised by the lessor. Without raising the invoice, is it possib....
X X X X Extracts X X X X
X X X X Extracts X X X X
....le to demand rent ? Date of invoice is crucial. Due date mentioned in the contract/agreement is crucial. Reply By Ganeshan Kalyani: The Reply: In case of lease the payment is made based on the agreement terms. Agreed in GST raising of invoice is must. So the liability would get triggered based on the invoice date. I agree with you Sir.<br> Discussion Forum - Knowledge Sharing ....