The time of supply in case of 'Deposit Works' being executed by the applicant will be the time of receipt of funds from the client government department.
Time of supply— Section 13 of CGST Act— In the instant case, the applicant is a Board constituted under Uttar pradesh avas evam vikas parishad Adhiniyam, 1965 and entrusted with the work to execute housing and improvement schemes in the State, whether chalked out by itself or by any local authority.
applicant has sought Advance Ruling as follows : -
i. What is the time of supply in case of 'Deposit Works' being executed by the applicant- whether it is the time of receipt of funds from the client government department or the time when expenditure incurred towards execution of the work is debited to 'Deposit Works account'?
ii. What shall be the value of supply in aforementioned two alternatives?
we observe that the contention of the applicant that the amount received by them as “Deposit Work” is a deposit and not advance, is not tenable. The amount received by them is rightly classifiable under advance received for supply of service.
Held that— Therefore, in case of advance received for any supply, time of supply is fixed at the point when advance is received, irrespective of the fact whether the supply is made or not. Accordingly, GST needs to be paid with reference to the time at which advance is received. In view of this we observe that the time of supply in case of 'Deposit Works' being executed by the applicant would be the time of receipt of funds from the client (Government department).
The value of the supply, on the advance payment received by the applicant, will be the amount of advance received by the applicant towards that particular work/ supply.