Chapter IV - Time and value of supply
Section 13
Section 13: Time of supply of services
Section 13 decides when CGST liability arises on services. It treats a timely invoice differently from a late invoice and has a separate reverse-charge test.
On this page
Need advice on Section 13?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The liability to pay tax on services 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 section 31 or the date of receipt of payment, whichever is earlier; or (b) the date of provision of service, if the invoice is not issued within the period prescribed under 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 the 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.
Explanation.––For the purposes of clauses (a) and (b)–– (i) the supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment; (ii) “the date of receipt of payment” shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier.
(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earlier of the following dates, namely:–– (a) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or (b) the date immediately following sixty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier, in cases where invoice is required to be issued by the supplier; or (c) the date of issue of invoice by the recipient, in cases where invoice is to be issued by the recipient: Provided that where it is not possible to determine the time of supply under clause (a) or clause (b) or clause (c), the time of supply shall be the date of entry in the books of account of the recipient of supply: Provided further that in case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier.
(5) Where it is not possible to determine the time of supply under the provisions of sub-section (2) or sub-section (3) or sub-section (4), the time of supply shall–– (a) in a case where a periodical return has to be filed, be the date on which such return is to be filed; or (b) in any other case, be the date on which the tax is paid.
(6) The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.
Introduction
For an invoice issued within section 31's prescribed period, compare invoice and payment receipt. If not issued in that period, compare provision of service and payment receipt. Where neither applies, recipient books entry is relevant. The current reverse-charge wording also includes a recipient-issued invoice date where the recipient must issue the invoice.
Key takeaways
Timely invoice changes the date test
A timely invoice uses the earlier invoice or payment date; a late invoice uses service-provision or payment date.
Reverse-charge services have an amended test
Compare recipient payment, the day immediately after 60 days from a supplier-issued document where required, and recipient-issued invoice date where that document is required.
Associated foreign enterprises have a special proviso
For services from an associated enterprise outside India, compare recipient books entry and payment, using the earlier.
Ordinary service timing
Determine whether the invoice met section 31's prescribed period. For a timely invoice use its date or payment receipt, whichever is earlier. For an untimely invoice use service provision or payment receipt, whichever is earlier; subsection (2)(c) covers the stated residual case.
Reverse-charge service timing
Use subsection (3)'s payment date and the applicable supplier-document or recipient-invoice candidate. The 2024 insertion makes the recipient's invoice date material when the recipient must issue it. If the candidates cannot be determined, use the statutory recipient-books fallback.
Payment and additions
Payment receipt is the earlier of the supplier books entry or bank credit for the ordinary rule. Delayed-payment interest, late fee and penalty added to value use their actual receipt date under subsection (6). The former voucher subsection (4) is omitted.
Practical checklist
Do
- Record service completion, invoice, books and bank dates.
- Check the current section 31 invoice period.
- For reverse charge, identify who must issue the invoice.
Avoid
- Assume an untimely invoice controls the service time of supply.
- Use the omitted voucher subsection (4) as current law.
Frequently asked questions
What if a service invoice is issued late?
Section 13(2)(b) compares the service-provision date with payment receipt, rather than relying on the late invoice date.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026