Hi Professional Colleagues,
I have a query with regard to unbilled revenue on a regular basis.
There is an ITes Company that provides services to its client. The services can only be billed post confirmation of the client. This confirmation may or may not be received within the 30 days period and in few cases, it might be beyond 30 days thereby not allowing company to raise the invoice within 30 days as GST regulations. As per GST law, Rule-46, in case of the taxable supply of services, invoice has to be issued within 30 days from the date of supply of service.
In our opinion since the revenue is not measurable 100% accurately, the revenue cant be recognized on provision of services even though the services have been rendered. The revenue is recognizable only post confirmation of the client. Thus the liability of GST will only arise at the time of issuance of invoice.
What are views from subject experts?
Best,
CA Rohit Kapoor
CAclubindia
