Insurer/banks/NBFCs and telecom operators making supplies to a distinct person (same PAN, different state — Schedule I)
By the time of recording in books OR end of the quarter, whichever is earlier
Cessation of supply of service (continuous supply ends before contracted period)
Invoice for supply made up to date of cessation — at the time when supply ceases
## Continuous Supply of Services — Special Triggers
The invoice trigger depends on the contract terms for due date of payment:
1. Where due date of payment IS ascertainable from the contract → invoice on or before the due date of payment.
2. Where due date is NOT ascertainable → invoice on or before the date supplier receives payment.
3. Where payment is linked to completion of an event (milestone) → invoice on or before the date of completion of that event.
## Why It Matters
Like with goods, the 'last date on which invoice should have been issued' is one limb of TOS under forward charge for services. Missing the Rule 47 deadline shifts TOS to that latest-permitted date.
Worked example
### Example 1
Example 1 — General: Service completed 5 May; invoice must be issued by 4 June (30 days).
### Example 2
Example 2 — Bank: Bank charges service date 1 July; invoice must be issued by 15 August (45 days).
### Example 3
Example 3 — Continuous supply, ascertainable due date: AMC contract says payment due every quarter on 30th day. Invoice for Q1 must be issued on or before 30 June (quarter-end due date).
### Example 4
Example 4 — Event-linked: Construction contract releases payment on completion of slab. Slab completed 12 Sept → invoice must be issued on or before 12 Sept.
### Example 5
Example 5 — Cessation: A 1-year AMC ceases mid-contract on 15 Oct. Invoice for service rendered till 15 Oct must be issued at the time of cessation, even if no quarterly milestone is due.
⚠️ Common exam mistakes
Applying the 45-day window to ordinary service providers — 45 days is exclusive to insurers, banks, FIs/NBFCs.
Ignoring the 'distinct persons' rule for banks/NBFCs/telecom — the quarter-end / book-entry trigger is missed often.
For continuous supply, mechanically using the 30-day rule instead of the contract-based trigger (due date / payment / event).
Forgetting to invoice on cessation when a continuous supply contract is terminated early.
Section 31(2): A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice. Rule 47: The invoice referred to in rule 46, in case of taxable supply of services, shall be issued within a period of 30 days from the date of supply of service. Provided that the period shall be 45 days for insurer, banking company, financial institution, including NBFC. Provided further that an insurer, banking company, FI/NBFC or telecom operator, or any other class of supplier of services as may be notified by the Government, making taxable supplies of services between distinct persons as specified in section 25, may issue the invoice before or at the time such supplier records the same in his books of account or before the expiry of the quarter during which the supply was made.