Section 13 – Time of Supply of Services

- February 05, 2026

Section 13 of CGST Act, 2017 – Time of Supply of Services

Updated on: February 2026 (as amended and applicable till date)
Prepared by: Yours Tax Consultant

1. Bare Act Text – Section 13 (Effective Provisions)

Section 13(1):
The liability to pay tax on services shall arise at the time of supply, as determined in accordance with the provisions of this section.

Section 13(2):
The time of supply of services shall be the earliest of the following dates:

Date of issue of invoice, if issued within the prescribed period, or date of receipt of payment, whichever is earlier
Date of provision of service, if invoice is not issued within the prescribed period, or date of receipt of payment, whichever is earlier
Date on which the recipient shows the receipt of services in his books of account, where the above clauses do not apply

Section 13(3):
In case of supplies liable to tax under reverse charge, the time of supply shall be the earliest of:

Date of payment
Date immediately following sixty days from the date of issue of invoice by the supplier

Section 13(4):
In case of associated enterprises, where the supplier is located outside India, the time of supply shall be:

Date of entry in the books of account of the recipient, or
Date of payment, whichever is earlier

Section 13(5):
Where it is not possible to determine the time of supply under sub-sections (2), (3) or (4), the time of supply shall be the date on which the periodical return is required to be filed.

Section 13(6):
In case of addition in value by way of interest, late fee or penalty, the time of supply shall be the date on which the supplier receives such additional value.

2. Objective of Section 13

Section 13 determines the exact point of time when GST becomes payable on services.

It plays a critical role in:

Fixing the correct tax period
Determining applicable GST rate
Computing interest for delayed payment

3. General Rule – Forward Charge (Section 13(2))

For normal (forward charge) supplies of services, GST is payable at the earliest of:

Date of invoice (if issued within prescribed time)
Date of receipt of payment

If invoice is not issued within the prescribed period, time of supply shifts to:

Date of provision of service, or
Date of receipt of payment, whichever is earlier

4. Reverse Charge Mechanism – Section 13(3)

In services liable to GST under reverse charge, the liability to pay tax arises with the recipient.

Time of supply is the earliest of:

Date of payment
60 days from the date of invoice issued by the supplier

This provision is commonly applicable in:

Legal services
GTA services
Import of services

5. Associated Enterprises – Section 13(4)

Where services are received from an associated enterprise located outside India, special rules apply.

Time of supply shall be:

Date of entry in books of account of the recipient, or
Date of payment, whichever is earlier

This provision prevents deferment of tax in cross-border group transactions.

6. Residual Rule – Section 13(5)

If time of supply cannot be determined under any of the above provisions, the fallback rule applies.

Time of supply shall be:

Date on which the return is required to be filed.

7. Interest, Late Fee & Penalty – Section 13(6)

Any additional consideration received in the nature of:

Interest
Late fee
Penalty

is taxable at the time it is actually received.

8. Section 13 Read with Relevant CGST Rules

The prescribed invoice time limits under Rule 47 directly affect the time of supply under Section 13.

9. Common Practical Issues

Delay in issuing invoice for services
Incorrect identification of payment date
RCM liability missed due to 60-day rule
Book entry treated as time of supply in AE cases

10. Related Provisions

11. Professional Tip

For services, delay in issuing invoice is one of the biggest reasons for interest liability. Always track the invoice time limit under Rule 47 to avoid disputes.

Disclaimer: This article is prepared considering the CGST Act, CGST Rules, notifications and legal position applicable till date. Future amendments or judicial pronouncements may require revision.

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