Q. 532 In Construction services, in the “Service Tax” Rules there was a trade notice stating that completion of services was deemed completed only after receiving approval from the client – Ref. Circular No. 144/13/ 2011 dated 18 th July, 2011– ST F.No.354/93/2011-TRU of Department of Revenue, Central Board of Excise and Customs, which reads as under: Representations requesting clarification on “completion of service” as provided under the Point of Taxation Rules, 2011 and Service Tax Rules, 1994 have been received from certain sections of service providers that in many situations it is not possible to issue invoices within 14 days of the completion of the service since the exact date of completion of service is difficult to identify. Instances have been given where after the task of providing the service may be physically accomplished, but certain other formalities are required to be completed from the client’s end before an invoice can be issued. My query is that if there is any similar law, circular, trade notice, case-law or notification in GST Act which gives relaxation to the contractor that completion of services be deemed after approval from the client ?

Ans. Under GST law, legal provisions are the same. References can be taken from earlier case laws.

Q. 531 Which HSN code should be used for freight charges charged in sales invoice along with goods?

Ans. Yes, SAC code used for services is required.

Q. 530 For a Supplier having turnover less than 5 crore , where both B2B & B2C supply is made , can we mention HSN code for B2B only and ignore to mention HSN code for B2C in GSTR 1 , as per NN 78/2020 -CT ?

Ans. Yes, it is optional.