Monday, 27 November 2017

Time limit for Issuance of Invoice in case of Supply of Goods or Services

The Liability to Pay Tax arises at Point of taxation. The Point of taxation under GST is determined by Time of Supply of Goods and/or Services. Determination of Time of Supply  enables the Supplier of Goods and/or Services to identify the timeline within which, the GST Tax liability has to be discharged.

Time of Supply of Goods 


Time of Supply in case of Goods will be earliest of the following :

  • Actual date of Issue of Invoice by the Supplier or
  • Date on which payment is credited to the Books of Accounts of the Supplier or
  • Date on which payment is credited to the Suppliers Bank account or
  • Last Date/Due Date on which the Supplier is required to Issue the Invoice
Due Date for issuance of Invoices in case of Supply of Goods except for certain notified categories is:


  • The Time of Removal of Goods for Supply where Supply involves movement of goods 
  • The Time of Receipt of Approval or 6 months from the date of removal of goods, whichever is earlier where Sale is on approval basis
  • The Time of Delivery of goods to the recipient where the Supply does not involve any movement of goods.

 Time of Supply of Services


Time of Supply in case of Services will be earliest of the following :


  • Actual date of Issue of Invoice by the Supplier or
  • Date on which payment is credited to the Books of Accounts of the Supplier or
  • Date on which payment is credited to the Supplier's Bank account or
  • Last Date/Due Date on which the Supplier is required to Issue the Invoice
In case of Supply of Services except for certain notified categories, invoices should be issued within 30 days of Provision of Services.

Time of Supply of Goods and/or Services may vary in case of Continuous Supply of Goods and/or Services which will be covered in the next blog.

- Pooja Teli

Thursday, 23 November 2017

CONSTITUTION OF TASK FORCE FOR DRAFTING A NEW DIRECT TAX LEGISLATION



During Rajaswa Gyan Sangam held on 1st and 2nd September, 2017, Honourable Prime Minister had observed that the Income-tax Act, 1961 (the Act) was drafted more than 50 years ago and it needs to be redrafted.

Accordingly, in order to review the Act and to draft a new direct tax law in consonance with economic needs of the country. The Government vide Press Release dated 22nd November 2017 have informed about creation of the Task force which includes members of Central Board of Direct taxes, professional from Chartered Accountant and Legal fraternity.

The Terms of Reference of the Task Force is to draft an appropriate direct tax legislation keeping in view
  • The direct tax system prevalent in various countries
  • The international best practise's.
  • The economic needs of the country and
  • Any other matter connected thereto



The Task force is expected to submit its report to the Government within Six months.


Yes it is a welcome step to look into Direct Tax regime with a new eye, as India is on a growth trajectory whereby according to IMF statistics growth of Indian economy is expected to 7.2% and 7.7% in fiscal years 2017-18 and 2018-19 respectively. Though we feel while drafting the new direct tax regime the task force should also consider settled judicial pronouncements whereby not creating new litigation's on same settled issues. 

Especially with the Goods and Service Tax (GST) bite just being served by the Government,  which  though is yet to be stabilised and digested by the Nation at large, we  believe that the government should not rush with release of New Direct tax legislation and take into consideration the bottle necks faced with regards to legal interpretation and practical implementation by Nation at large with implementation of GST a new face of the Indian Indirect Tax regime !