Home Case Index All Cases GST GST + AAR GST - 2019 (10) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 1188 - AAR - GSTTime of supply - continuous supply of services - renting of immovable properties - HELD THAT:- It is seen from lease agreements with State Bank of India for 01.04.2015 to 31.03.2020, R R Stones Private Limited for the period 05.03.2016 to 04.03.2021, Raj Petro Specialties Private Limited for the period 04.11.2015 to 03.11,2020 and Total Care Services Private Limited for a period of 10 years that the lease fee is to be paid monthly or with an upfront payment and rent to be paid annually. It is seen that there is a requirement of the lessee to pay lease rent or license fee periodically while they occupy the immovable property. During the currency of the lease agreement, the applicant issues an invoice periodically as required in the respective lease agreement. In respect of continuous supply of service when the license is in effect , as per Section 31(5), the tax invoice, containing the details as per Rule 46 of CGST/TNGST Rules ,should be raised on or before due date of payment as ascertainable from the contract. It is seen in the sample contracts provided that in certain cases, the due date of payment is periodical, either monthly or annually, with the due dates specified after the end of such period. If the rent invoice is issued before the due date of payment, the Time of supply is determined by Section 13(2) (a), as the earliest of the date of issue of invoice by the supplier and the date of receipt of payment. If payment is not received for any reason, including legal disputes, the time of supply shall be date of issue of invoice. If the invoice is issued after such due date of payment, the Time of supply is determined by Section 13(2) (b), as the earliest of the date of provision of service which is the end of the period (monthly/annual etc.) specified in the contract and the date of receipt of payment, whichever is earlier. If payment is not received for any reason, including legal disputes, the time of supply shall be the date of provision of service which is the end of recurrent period specified in the agreement after which the rent/license fee is to be paid. The time of supply in cases where instead of receiving the full consideration, they only get a partial amount as payment - HELD THAT:- In these case too the above will apply as the date of payment of full consideration is the date of reckoning of the date of payment.
|