Time of supply in case of works contract under GST

By | March 17, 2017
(Last Updated On: March 17, 2017)

Time of supply in case of works contract under GST

As per SCHEDULE II [ MATTERS TO BE TREATED AS SUPPLY OF GOODS OR SERVICES]  of Revised Model GST Law  ,

5 The following shall be treated as “supply of service”

(f) works contract including transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

Thus in terms of sub-clause (f) to clause 5 of Schedule II, the works contract under the GST regime should be treated as supply of service. Accordingly, in terms of Section 13 –Time of supply of services  shall be the earliest of the following

(a) Date of issue of invoice;
(b) Due date of issue of invoice under Section 28-[ Tax invoice]
(c) Date when the payment entry in relation to supply of services is recorded in the books of accounts;
(d) Date on which the payment is credited to supplier’s bank account.

 

 

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