The Government of Tamil Nadu on July 12, 2024, issued a clarification on the time of supply of services of spectrum usage and other similar services under GST.
The following has been stated namely: -
• It clarifies that GST shall be payable when the upfront payment is due or made for full upfront payments, and when payments are due or made for deferred payments in installments by telecom operators.
• It clarifies that the time of supply of services under reverse charge shall be the date of payment recorded in the recipient's books or debited in the bank account, whichever is earlier, or the date immediately following sixty days from invoice issuance by the supplier - Section 13(3) CGST Act, 2017.
• It clarifies that similar time of supply rules shall apply to the allocation of natural resources by the government for the right to use, constituting continuous supply under the CGST Act, with upfront or deferred payments.
[Circular No. 15/2024 (PP6/GST-16O/2024)]
