Page 106 - GSTL_23rd April 2020_Vol 35_Part 4

432 GST LAW TIMES [ Vol. 35
 Payment linked to completion of event, the date of completion of
event.
Section 13 provides the time of supply of service and also the liability to pay tax,
as the earliest of the following :
 Date of issue of invoice which should necessarily be 30 days from
the date of provision of service (r/w Section 31 and Rule 47 of the
CGST Rules, 2017)
 Date of provision of service where invoice is not [issued] within 30
days
 Date of receipt of payment.
In the instant case, the applicant should submit the monthly invoices along with
the savings calculation as per Schedule 3 of the contract. The payment would be
released to the applicant only after the energy savings report is submitted to
TMC & third party energy auditor and the same is verified & approved. In view
of the above, the applicant contends that the due date of payment is not the end
of the month, but is only after the energy savings report is submitted & verified
by TMC/energy auditor. The payments are released only after completion of 30
days from the date of submission of energy audit report. Therefore the time of
supply is 30 working days from the date of submission of approved energy sav-
ings report.
6.5 The applicant with regard to time of supply, in case their activity is
treated as supply of goods, contends that the tax invoice, in terms of Section 31,
need to be issued before or at the time of removal of goods, if the movement of
goods is involved. If there is no movement of goods the tax invoice need to be
issued at the time at which the goods are made available to the recipient. Further
as per Section 12, the time of supply would be earliest of the following :
 Date of issue of invoice or last date of its issuance in terms of Sec-
tion 31
 Date of receipt of payment with respect to supply
Further Section 15 provides that the transaction value of supply is the price paid
or payable for the supply where the price is sole consideration of such supply.
The term consideration u/s. 2(31) refers to the payment due to be made to the
supplier for the supply made.
In the instant case, the consideration would be calculated only after the
energy savings is calculated and the applicant is entitled to 90% of the energy
saved from the monthly consumption of TMC, which takes place during the en-
tire tenure of the contract. The goods are handed over only at the time of termi-
nation of the contract.
Therefore the consideration of the supply (when supply treated is of
goods) would be the entire savings during the tenure of contract which can be
computed at the end of the tenure. Moreover, the supply of goods takes place
only at the end of the contract when the possession and vesting takes place.
Hence the time of supply of goods would be at the end of the tenure of contract
i.e. at the end of 7 years, as the goods are handed over only at the end of contract.
Personal Hearing/Proceedings held on 21-11-2019 :
7. Sri. Rishabh Singhvi, Chartered Accountant, M/s. R. Singhvi & As-
sociates, duly authorised representative of the applicant appeared for personal

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