In the case of M/s. Jaiprakash Associates Limited, it has been decided by Telangana AAR that in terms of Section 142(2)(a), any upward revision of Prices during GST Period, related to Goods & Services supplied in pre-GST regime will be considered as supply under GST and supplementary Invoice or Debit Note need to be issued with in 30 days of such revision.
Brief Facts of the Case
Taxpayer was allotted a contract in 2008 by Irrigation Department.
Government considered the representation and agreed for Rate revision for the changed site conditions beyond agreement period as per the observed data vide Government memo No. 5590/Proj.I/A1/2021 dated 07-09-2021.
Accordingly, the company has submitted the RA Bill for differential amount as per approved revised rates for work done from September 2010 (Aug 2010- end of agreement period) to June 2017.
Question Raised
What is the time of supply of the work executed from September 2010 to June 2017?
How to issue tax invoice in this scenario.
Legal Provisions
Section 142(2)(a)
Where, in pursuance of a contract entered into prior to the appointed day, the price of any goods or services or both is revised upwards on or after the appointed day, the registered person who had removed or provided such goods or services or both shall issue to the recipient a supplementary invoice or debit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act such supplementary invoice or debit note shall be deemed to have been issued in respect of an outward supply made under this Act.
Decision
(i) What is the time of supply of the work executed from September 2010 to June 2017?
The time of supply is the date on which such consideration / payment is received.
(ii) How to issue tax invoice in this scenario.
The applicant shall receive a supplementary invoice or debit note, within thirty days of such price revision and such supplementary invoice or debit note shall be deemed to have been issued in respect of an outward supply made under CGST/SGST Acts.
Additional Information
Similarly, in case of downward revision of Prices, Credit Note under this Law can be issued (Section 142(2)(b).) (provided that Recipient of such Credit Note has reversed ITC against this C.Note).
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Disclaimer: We did interpretation of Respected Authority Decision for purely academic purpose. In case, there is any mistake in understanding of the order, we are apologised to the Authority.