CGST Act, 2017 › Chapter IV › Section 13

Section 13 of CGST Act: Time of Supply of Services

Section 13 of the Central Goods and Services Tax Act, 2017 determines when the liability to pay GST arises on a supply of services. In ordinary forward-charge cases, the result primarily depends on the timing of the invoice, the provision of service and receipt of payment. Separate rules apply to reverse charge, vouchers and delayed additions to consideration.

At a glance: For a normal taxable service, first check whether the tax invoice was issued within the time prescribed under Section 31(2) read with Rule 47 of the CGST Rules. If it was issued in time, compare the invoice date with the date of receipt of payment. If it was not issued in time, compare the date of provision of service with the date of receipt of payment.

Meaning and purpose of Section 13

The "time of supply" fixes the tax point for a service. It is therefore relevant for identifying the tax period in which GST liability arises. Section 13 should be read with Section 31 on tax invoices, the applicable CGST Rules and, where the tax rate changes, Section 14.

Time of supply under forward charge - Section 13(2)

Situation	Time of supply
Invoice issued within the prescribed period	Earlier of the date of issue of invoice or the date of receipt of payment.
Invoice not issued within the prescribed period	Earlier of the date of provision of service or the date of receipt of payment.
Neither of the above clauses applies	Date on which the recipient records receipt of the services in its books of account.

For these purposes, receipt of payment is generally linked to the earlier of the date on which payment is entered in the supplier's books or credited to the supplier's bank account. The supply is treated as made to the extent covered by the invoice or payment.

Invoice time limit for services

Section 31(2) requires a registered supplier of taxable services to issue an invoice within the prescribed period. Rule 47 generally prescribes 30 days from the date of supply of service. For an insurer, banking company, financial institution including an NBFC, the prescribed period is generally 45 days, subject to the rule and applicable special provisions.

Excess payment up to Rs. 1,000

Where a supplier receives an amount up to Rs. 1,000 in excess of the amount shown in the tax invoice, Section 13(2) permits the supplier, at its option, to treat the date of issue of the invoice relating to that excess amount as the time of supply to that extent.

Reverse charge - Section 13(3)

Where tax on a service is payable under reverse charge, the time of supply is generally the earlier of:

the date of payment as entered in the recipient's books of account or the date on which the payment is debited from the recipient's bank account, whichever is earlier; or
the date immediately following 60 days from the date of issue of the supplier's invoice or other document in lieu of invoice.

If the time of supply cannot be determined by those rules, it is the date of entry in the recipient's books of account. For services supplied by an associated enterprise located outside India, the special rule in the second proviso to Section 13(3) should also be checked.

Vouchers - Section 13(4)

For a supply of vouchers, the statutory rule distinguishes between a supply identifiable when the voucher is issued and a supply that is identifiable only later. The time of supply is the date of issue where the supply is identifiable at that point; otherwise, it is the date of redemption.

Residual rule - Section 13(5)

Where time of supply cannot be determined under Section 13(2), 13(3) or 13(4), the Act uses a residual rule: where a periodical return has to be filed, the relevant date is the date on which that return is due; in other cases, it is the date on which tax is paid.

Interest, late fee or penalty - Section 13(6)

Where the value of supply is increased by interest, late fee or penalty for delayed payment of consideration, the time of supply for that additional amount is the date on which the supplier receives it.

Illustrative examples

Example	Result
Service supplied on 5 September; invoice validly issued on 20 September; payment received on 28 September.	Time of supply is 20 September, being earlier than receipt of payment.
Invoice is not issued within the prescribed period and the service was provided on 5 September; payment is received on 18 September.	Time of supply is 5 September, being earlier than receipt of payment.
Reverse-charge service: invoice dated 1 July and no earlier payment is made.	Subject to the facts and applicable RCM provision, the 60-day rule under Section 13(3) must be applied.

Text and structure of Section 13

Section 13(1): The liability to pay tax on services arises at the time of supply determined in accordance with this section.

Section 13(2): It lays down the normal time-of-supply rules by reference to timely invoice, provision of service, receipt of payment and, in the residual situation covered by clause (c), the recipient's books.

Section 13(3): It prescribes the time of supply for services taxable under reverse charge and contains special provisos.

Section 13(4): It deals with vouchers.

Section 13(5): It provides a fallback where the preceding rules do not determine the time of supply.

Section 13(6): It fixes the time of supply for interest, late fee or penalty received for delayed payment of consideration.

Important: Section 13 determines the time of supply of services. It does not by itself decide whether a transaction is a taxable supply, whether reverse charge applies, the place of supply, the applicable GST rate, or eligibility for input tax credit. Those questions must be examined under the relevant provisions and notifications.

Related CGST provisions

Section 12 - Time of supply of goods | Section 14 - Change in rate of tax | Section 15 - Value of taxable supply | Section 31 - Tax invoice