Section 13 does for services what section 12 does for goods. The difference that matters most is that advances for services are taxed when received, and that, for reverse charge, the supplier's invoice starts a sixty-day clock — or, where the recipient must itself raise the invoice, the recipient's invoice fixes the date.
Key points
- Under section 13(2) of the CGST Act, 2017 the time of supply of services is the earlier of the invoice date and the payment date if the invoice is issued within the time under section 31; otherwise the earlier of the date of provision of service and payment.
- Advances received for services are taxable on receipt.
- For services on reverse charge, the time of supply is the earlier of payment and the day after sixty days from the supplier's invoice; from 01.11.2024, where the recipient must issue the invoice (purchases from unregistered suppliers), it is the date of the recipient's invoice.
- For services from an associated enterprise abroad, the time of supply is the earlier of the entry in the recipient's books and payment.
The provisions
13(1)–(2)Forward charge
Statutory text
(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.
(2) The time of supply of services shall be the earliest of the following dates, namely:-
(a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under 1[****] section 31 or the date of receipt of payment, whichever is earlier; or
(b) the date of provision of service, if the invoice is not issued within the period prescribed under 1[****] section 31 or the date of receipt of payment, whichever is earlier; or
(c) the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not: apply
Provided that where the supplier of taxable service receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice relating to such excess amount.
Explanation .-For the purposes of clauses (a) and (b)-
(i) the supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment;
(ii) "the date of receipt of payment" shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier.
*Enforced w.e.f. 1st July, 2017.
1. Omitted "sub-section (2) of " by s. 7 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) - Brought into force w.e.f. 01st February, 2019.
13(3)Reverse charge
Statutory text
(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earlier of the following dates, namely:-
(a) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or
(b) the date immediately following sixty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof 2[by the supplier, in cases where invoice is required to be issued by the supplier; or]:
3[(c) the date of issue of invoice by the recipient, in cases where invoice is to be issued by the recipient:]
Provided that where it is not possible to determine the time of supply under clause (a) or clause (b) 3[or clause (c)], the time of supply shall be the date of entry in the books of account of the recipient of supply:
Provided further that in case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier.
2. Substituted by section 117 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.
3. Inserted by section 117 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.
What it means
- (a) the date of payment (recipient's book entry or bank debit, whichever is earlier); or
- (b) the day after sixty days from the supplier's invoice — where the supplier issues the invoice;
- (c) from 01.11.2024 (Finance (No. 2) Act, 2024), the date of the recipient's own invoice where the recipient must issue it — that is, services received from an unregistered supplier on which the recipient pays reverse charge under section 31(3)(f).
- Fallbacks: the date of entry in the recipient's books; and, for services from an associated enterprise located outside India, the earlier of the book entry and payment.
13(4)–(6)Vouchers; residual rule; interest and late fees
Statutory text
(4) 4[****]
(5) Where it is not possible to determine the time of supply under the provisions of sub-section (2) or sub-section (3) or sub-section (4), the time of supply shall-
(a) in a case where a periodical return has to be filed, be the date on which such return is to be filed; or
(b) in any other case, be the date on which the tax is paid.
(6) The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.
4. Omitted (w.e.f. 01.10.2025) "In case of supply of vouchers by a supplier, the time of supply shall be-(a) the date of issue of voucher, if the supply is identifiable at that point; or (b) the date of redemption of voucher, in all other cases." by s. 123 of the Finance (No.7 of 2025) Act, 2025.
What it means
The voucher rule in sub-section (4) was omitted from 01.10.2025 by the Finance Act, 2025. Sub-section (5) is the fallback to the return due date or date of payment; sub-section (6) taxes interest, late fee or penalty for delayed payment when received.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Is GST payable on advances for services?
- Yes. Under section 13(2) of the CGST Act the time of supply is the earlier of invoice and payment, so an advance for a service is taxed when received.
- When is reverse-charge GST on services payable?
- At the earlier of payment and the day after sixty days from the supplier's invoice; where the recipient issues the invoice (unregistered supplier), on the date of that invoice — from 01.11.2024.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The invoice is due within thirty days of the supply for most services (Rule 47, made under section 31). If it is issued in time, the time of supply is the earlier of invoice and payment; if not, the earlier of the date the service was provided and payment. If neither applies, the date the recipient records the service in its books. Payment is the earlier of the supplier's book entry and the bank credit.
There is no equivalent of Notification 66/2017 for services: an advance for a service is taxed when received.