Section 14 of GST Act: Time of Supply for Change in GST Rates

Amended and updated notes on section 14 of CGST Act, 2017. Provisions and rules related to change in rate of tax in respect of supply of goods or services.

Amended and updated notes on section 14 of CGST Act, 2017. Detail discussion on provisions and rules related to change in rate of tax in respect of supply of goods or services.

Chapter IV (Sections 1215) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to time and value of supply. Section 14 of CGST 2017 provides for change in rate of tax in respect of supply of goods or services.

Recently, we have discussed in detail section 13 (Time of Supply of Services) of CGST Act 2017. Today, we learn the provisions of section 14 of Central GST Act 2017.

Section 14 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 14 is 1-7-2017.

Name of ActThe Central Goods and Services Tax Act 2017
Enacted byParliament of India
Administered byCentral Board of Indirect Taxes & Customs
Governing bodyGST Council
Number of Chapters21
Number of Sections174
You are reading:
Chapter No.IV
Chapter NameTime and value of supply
Section No.14
Section NameChange in rate of tax in respect of supply of goods or services
Updated 2024 EditionGST Law Book PDF

Relevant Rules and Forms for GST Section 14:

  • Rule 47: Time limit for issuing tax invoice

Section 14 of Central GST – Change in rate of tax in respect of supply of goods or services1

Section 14 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.

Notwithstanding anything contained in section 12 or section 13, the time of supply, 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: ––

  • (a) in case the goods or services or both have been supplied before the change in rate of tax, ––
    • (i) 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
    • (ii) 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
    • (iii) 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;
  • (b) in case the goods or services or both have been supplied after the change in rate of tax, ––
    • (i) 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
    • (ii) 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
    • (iii) 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.

  1. Section 14 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎

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