While paying tax for a transaction under GST, it is very necessary to determine the norms for the time of supply. The GST on advance is charged based on the time of supply made. Check out the below terms.
Given below are the general norms for the time of supply for services –
- Date of issue of invoice
- Date of receipt of payment/advance*
- Date on which invoice should be issued
The second point – date of receipt of advance – indicates that if the buyer pays has paid an advanced before the invoice is issued, the date of receipt of advanced would be the time of supply.
