TMI BlogTime of Supply of Services Addition in valueX X X X Extracts X X X X X X X X Extracts X X X X ..... ection 31 of CGST Act 2017. The tax invoice needs to be issued either before the provision of service or within 30 days (45 days in case of insurance companies/ banking companies/ financial institutions including NBFCs) from the date of supply of service. [section 31(2) read with rule 47 of CGST Rules ]. In case of insurance companies/ banking companies/ financial institutions including NBFCs/ telecom companies/ notified supplier of services making taxable supplies between distinct persons as specified in section 25, invoice may be issued before or at the time of recording such supply in the books of account or before the expiry of the quarter during which the supply was made [ Second proviso to rule 47 ]. In cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... July and for such delay he is eligible to receive an interest amount of ₹ 1,000/- and said amount is received on 15.12.2017. The time of supply of such amount (₹ 1,000/-) will be the 15.12.2017 i.e., the date on which it is received by the supplier and tax liability on this is to be discharged by 20.01.2018. Circular No. 102/21/2019-GST dated 28 th June 2019 - Penal /Additional interest on delayed payment where the EMI is not paid at the scheduled time, there is a levy of additional / penal interest on account of delay in payment of EMI. such delayed payment charges in case of late payment of Equated Monthly Instalments (EMI) is liable for GST supply in respect of agreeing to obligation to refrain from an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 2:- X sells a mobile phone to Y. The cost of mobile phone is ₹ 40,000/-. Y has the option to avail a loan at interest of 2.5% per month for purchasing the mobile from M/s ABC Ltd. The terms of the loan from M/s ABC Ltd. allows Y a period of four months to repay the loan and an additional / penal interest @ 1.25% per month for any delay in payment. The additional / penal interest is charged for a transaction between Y and M/s ABC Ltd., and the same is getting covered under Sl. No. 27 of notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. Accordingly, in this case the 'penal interest' charged thereon on a transaction between Y and M/s ABC Ltd. would not be subject to GST , as the same would be covered un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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