Time of Supply of Services - Forward Charge (Section 13(2))
# Time of Supply of Services — Forward Charge (Section 13(2))
For services under forward charge, TOS splits into two scenarios based on whether the invoice is issued within the prescribed time limit (Rule 47).
## Case 1 — Invoice Issued WITHIN Time Limit
TOS = EARLIER of:
Date of issue of invoice, OR
Date of receipt of payment.
## Case 2 — Invoice Issued AFTER the Time Limit (or NOT issued)
TOS = EARLIER of:
Date of provision of service, OR
Date of receipt of payment.
## 'Date of Payment' Test
Earlier of:
Date entered in supplier's books, OR
Date credited in supplier's bank account.
## Small Advance Relief
Same ₹1,000 excess-advance relief as for goods is available — for the excess up to ₹1,000, supplier may, at his option, treat TOS as the date of invoice.
## Mental Model
```
If invoice on time → MIN(invoice date, payment date)
If invoice late → MIN(service date, payment date)
Date of payment = MIN(books entry, bank credit)
```
Unlike goods, GST on advances for services is still payable — Notification 66/2017 does NOT extend to services.
Worked example
### Example 1
Example 1 — Invoice on time: Service rendered 1 May. Invoice issued 20 May (within 30 days). Payment received 25 May. TOS = MIN(20 May, 25 May) = 20 May.
### Example 2
Example 2 — Invoice late: Service rendered 1 May. Invoice issued 15 June (>30 days). Payment received 10 June. TOS = MIN(1 May, 10 June) = 1 May.
### Example 3
Example 3 — Advance: Service to be rendered in August. Advance ₹40,000 received on 10 July. Invoice issued 5 Aug; service rendered 10 Aug. TOS for ₹40,000 = 10 July (payment received first).
### Example 4
Example 4 — Small excess advance: Invoice for ₹20,000 issued 5 Aug; customer paid ₹20,500 (₹500 excess) on 1 Aug. TOS for ₹500 excess at supplier's option = 5 Aug (invoice date).
⚠️ Common exam mistakes
Forgetting to switch to 'date of provision of service' when the invoice is late — using actual (late) invoice date undermines the TOS.
Treating the limit as 'within 30 days from invoice' instead of 'from supply of service'.
Ignoring GST on service advances — unlike goods, services have no Notification-66 exemption.
Confusing 'date of provision' with 'date of completion' for continuous supplies (where contract terms drive the trigger).
Bare-Act text Section 13(2) · CGST Act, 2017 · click to expand
Section 13(2): The time of supply of services shall be the earliest of the following dates, namely: (a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under section 31, or the date of receipt of payment, whichever is earlier; or (b) the date of provision of service, if the invoice is not issued within the period prescribed under section 31, or the date of receipt of payment, whichever is earlier; or (c) the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not apply.