Tax Rate Applicable when there is a change in Rate of Tax in GST

Sec­tion 14 of CGST Act 2017 deals with this:

where there is a change in the rate of tax in respect of goods or ser­vices or both, shall be deter­mined in the fol­low­ing man­ner, namely:––

• in case the goods or ser­vices or both have been sup­plied before the change in rate of tax,––
  • where the invoice for the same has been issued and the pay­ment is also received after the change in rate of tax, the time of sup­ply shall be the date of receipt of pay­ment or the date of issue of invoice, whichev­er is ear­li­er; or
  • where the invoice has been issued pri­or to the change in rate of tax but pay­ment is received after the change in rate of tax, the time of sup­ply shall be the date of issue of invoice; or
  • where the pay­ment has been received before the change in rate of tax, but the invoice for the same is issued after the change in rate of tax, the time of sup­ply shall be the date of receipt of payment;

 

• in case the goods or ser­vices or both have been sup­plied after the change in rate of tax,––
  • where the pay­ment is received after the change in rate of tax but the invoice has been issued pri­or to the change in rate of tax, the time of sup­ply shall be the date of receipt of pay­ment; or
  • where the invoice has been issued and pay­ment is received before the change in rate of tax, the time of sup­ply shall be the date of receipt of pay­ment or date of issue of invoice, whichev­er is ear­li­er; or
  • where the invoice has been issued after the change in rate of tax but the pay­ment is received before the change in rate of tax, the time of sup­ply shall be the date of issue of invoice:

Pro­vid­ed that the date of receipt of pay­ment shall be the date of cred­it in the bank account if such cred­it in the bank account is after four work­ing days from the date of change in the rate of tax.

 

Expla­na­tion.––For the pur­pos­es of this sec­tion, “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.