# Time of Supply — Spectrum Usage and Similar Services
When the Government allots spectrum (or grants similar natural-resource usage rights such as mining leases) to a telecom operator or other licensee, the licensee pays the consideration either upfront or in deferred instalments over the licence period.
## Nature of supply
- Service is supplied by the Government to the licensee.
- It is treated as a continuous supply of service because the right is enjoyed over a period, not at a single point in time.
- Tax is payable by the licensee under reverse charge.
## Time of Supply
Where the licensee opts to make payments in deferred instalments, the time of supply arises as and when the payments are due or made, whichever is earlier — i.e., on a usage / instalment-due basis rather than at the date of allotment.
Where the licensee opts to make a one-time upfront payment, ToS is the date of such payment (or due date, whichever is earlier).
## Why a clarification was needed
Without this clarification, a literal reading could have required the entire GST on the total licence fee to be paid upfront on the date of allotment, even though consideration was actually being paid over many years. The circular aligned ToS with the deferred payment schedule, avoiding a cash-flow burden.
## Quick recall
- Spectrum / mining rights = continuous supply of service under RCM.
- Deferred instalments → ToS = each instalment due date / payment date (whichever earlier).
- Upfront payment → ToS = date of upfront payment.