Sunday 10 December 2017
GST - CHANGING THE TAX RATE
How to Determine the GST Tax
Rate In Case Of Changing the Tax Rate
GST rates of many goods and services have
been changed from 15th November 2017. There may be confusion that which rate of
tax to be charged if payment is received before the changing of tax rate and invoice
is raised after the rate changed. There may be some more cases like this.
We need to consider three main point –
date of supply, date of payment and date of issued the invoice in this
situation.
In case the goods or services
or both have been supplied before the change in rate of tax,
Let assume the rate has been change 28%
to 18% on 15th Nov 2017.
Case
1-
Date of Supply – 10/11/2017
Date of Payment Received – 20/11/2017
Date of Issued the Invoice – 20/11/2017
GST Rate to be charged @ 18%
Case
2-
Date of Supply – 10/11/2017
Date of Payment Received – 12/11/2017
Date of Issued the Invoice – 20/11/2017
GST Rate to be charged@ 28%
Case
3-
Date of Supply – 10/11/2017
Date of Payment Received – 20/11/2017
Date of Issued the Invoice – 10/11/2017
GST Rate to be charged @ 28%
In case the goods or services
or both have been supplied after the change in rate of tax,
Case
4-
Date of Supply – 16/11/2017
Date of Payment Received – 20/11/2017
Date of Issued the Invoice – 12/11/2017
GST Rate to be charged @ 18%
Case
5-
Date of Supply – 16/11/2017
Date of Payment Received – 10/11/2017
Date of Issued the Invoice – 10/11/2017
GST Rate to be charged @ 28%
Case
6-
Date of Supply – 16/11/2017
Date of Payment Received – 10/11/2017
Date of Issued the Invoice – 16/11/2017
GST Rate to be charged @ 18%
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.
“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.
Refer Section 14 of CGST ACT-change in rate of tax in respect of supply of goods or services.
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