Chapter IV - Time and value of supply
Section 14
Section 14: Time of supply after a rate change
Section 14 overrides the ordinary goods and services timing rules when the GST rate changes. It asks whether supply happened before or after the change and where invoice and payment fall.
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Need advice on Section 14?
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
Notwithstanding anything contained in section 12 or section 13, the time of supply, where there is a change in the rate of tax in respect of goods or services or both, shall be determined in the following manner, namely:–– (a) in case the goods or services or both have been supplied before the change in rate of tax,–– (i) where the invoice for the same has been issued and the payment is also received after the change in rate of tax, the time of supply shall be the date of receipt of payment or the date of issue of invoice, whichever is earlier; or (ii) where the invoice has been issued prior to the change in rate of tax but payment is received after the change in rate of tax, the time of supply shall be the date of issue of invoice; or (iii) where the payment has been received before the change in rate of tax, but the invoice for the same is issued after the change in rate of tax, the time of supply shall be the date of receipt of payment; (b) in case the goods or services or both have been supplied after the change in rate of tax,–– (i) where the payment is received after the change in rate of tax but the invoice has been issued prior to the change in rate of tax, the time of supply shall be the date of receipt of payment; or (ii) where the invoice has been issued and payment is received before the change in rate of tax, the time of supply shall be the date of receipt of payment or date of issue of invoice, whichever is earlier; or (iii) where the invoice has been issued after the change in rate of tax but the payment is received before the change in rate of tax, the time of supply shall be the date of issue of invoice: Provided that the date of receipt of payment shall be the date of credit in the bank account if such credit in the bank account is after four working days from the date of change in the rate of tax.
Explanation.––For the purposes of this section, “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.
Introduction
The Act has six date combinations: three where supply preceded the change and three where it followed. The time of supply is selected from invoice and payment dates under the matching clause. This guide is about time of supply; the actual old and new rates come from the relevant notification.
Key takeaways
First locate the supply date
The first branch is whether goods or services were supplied before or after the rate-change date.
Then compare invoice and payment
Each branch has three invoice/payment combinations; do not assume invoice date alone controls.
Bank timing can matter
A special proviso treats bank credit as the payment-receipt date if it occurs after four working days from the rate change.
Supply before rate change
If invoice and payment are both after the change, use the earlier of those dates. If invoice was before and payment after, use invoice date. If payment was before and invoice after, use payment date, subject to the section's payment-date proviso.
Supply after rate change
If invoice was before and payment after, use payment date. If both invoice and payment were before, use the earlier. If invoice was after and payment before, use invoice date, subject to the payment-date proviso.
Document the applicable branch
Keep evidence for actual supply, notification effective date, invoice issue, books entry and bank credit. The section defines payment receipt as the earlier books or bank date, with its four-working-day bank-credit exception.
Practical checklist
Do
- Build a three-date timeline for each affected supply.
- Check the notification's exact effective date and old/new classification.
- Retain bank and ledger evidence near the changeover.
Avoid
- Apply the new rate merely because the invoice was issued after the change.
- Apply an old rate without checking the section 14 date combination.
Frequently asked questions
Does the actual supply date alone choose the applicable timing?
No. It selects the before/after branch; the invoice and payment dates then decide the statutory time of supply.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026