'M' booked a banquet hall on 5th July, 2020 for an agreed sum of ₹25,000 and paid an advance of ₹6,000 on that date. Function held in the banquet hall on 14th August, 2020. Thereafter, on 26th September, 2020 the owner o

As per section 31(2) of Central Goods and Services Tax Act, 2017 read with rule 47 of Central Goods and Services Tax rules, the tax invoice is to be issued within 30 days of supply of service. In the given case the invoice is not issued within the prescribed time limit. As per section 13(2)(b) of Central Goods and Services Tax Act, 2017, in a case where the invoice is not issued within the prescribed time, the time of supply of service is the date of provision of service or receipt of payment, whichever is earlier. Therefore, the time of supply of service to the extent of ₹6,000/- is 5th July, 2020 as the date of payment of ₹6,000/- is earlier than the date of provision of service. The time of supply of service to the extent of the balance ₹19,000/- is 14th August, 2020 which is the date of provision of service.