When does gst liability arise

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2018 Dear Sir/Madam,

Supply of goods/services was made on 10-04-2018 but on account of some reasons, sale invoice could not be made and booked in April 2018.

Later on, on the problem getting resolved, sale invoice was made and booked in May 2018 (Thereafter, GST booked in May 2018 was paid on 04-06-2018).

Is there OK or is there any contravention of any provision of the GST Act?

Thanks.

CA Himanshu Ojha

CA Himanshu Ojha (Expert)

05 June 2018 "The invoice referred to in rule 1, in case of taxable supply of services, shall be issued within a period of thirty days from the date of supply of service"

If you have issued within the given time, then no issue. You have raised the invoice in MAY month and paid the tax also; Just make sure the invoice date is within 30 days from 10/04/18

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2018 Thanks.
Please note that in this case, supply was made in April 2018, invoice was raised in May 2018 (GST liability booked in May 2018) and GST paid in June 2018 (next month from billing month).
So, is this OK?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

03 August 2025 Here’s how it works under GST law for your situation:

Time of Supply rules are key here to determine when GST liability arises.

For services, GST liability arises:

On the earlier of:

Date of issue of invoice, or

Date of receipt of payment, or

Due date of invoice (which is within 30 days from date of supply).

In your case:

Supply date: 10-04-2018 (April)

Invoice issued and booked: May 2018

GST paid: 04-06-2018

Since invoice was issued within 30 days from date of supply, it is compliant with the rule.

You booked GST in May when invoice was issued, which is correct, as liability arises on invoice date (earlier of invoice or payment).

Payment of GST on 04-06-2018 (within the due date of June return) is acceptable.

So, there is no contravention of GST provisions here.

Just ensure:

The invoice date is not beyond 30 days from supply date.

GST is paid in the return of the month in which invoice is issued (May in your case) or earlier.

Summary:
You have followed the rules correctly if invoice was raised within 30 days of supply and GST paid in the return period of invoice month.

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