Date of issue of Invoice for Works Contract Service

This query is : Resolved

HETAL RAMESH JIVRAJANI (Querist)
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02 September 2020 Can we raise invoice for supply of works contract service on completion of service or we have to raise the invoice at the time of receipt of payment if receipt is earlier than the time of completion of services.

Lekhraj sood

Lekhraj sood (Expert)
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02 September 2020 As per section 31(5) of CGST Act in case of continuous supply of service:-

1.Where the due date of payment is ascertainable or predetermined from the “Contract” then the invoice shall be issued on or before the due date of payment.
2.Where the due date of payment is not ascertainable or not predetermined from the contract then the invoice shall be issued before or at the time when the supplier of service receives payment.
3.Where the payment is linked to the “Completion of an event” the invoice shall be issued on or before the date of completion of that event.

Therefore,you have to refer to the contract and see the terms of payment or completion of mile stones specified for billing/payment.

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