Change in rate of tax in respect of supply of goods or services
Section 14, CGST Act
Straight from CBIC
Official source, not a summary of a summary
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Amendment history
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When the GST rate changes, section 14 decides which rate applies based on which two of the three events – supply, invoice, payment – fall before or after the rate change.
What this means in practice
The parts that actually decide cases — the things a practitioner checks first.
The test is which TWO of the three events – supply, invoice, payment – fall on the same side of the rate change; the majority decides the rate.
It mattered a great deal around 22-09-2025 when the rate reset took effect: an invoice raised before but supply and payment after attracts the new rate.
The date of payment for this section is the earlier of the credit in the bank account and the entry in the books, but the bank date governs if the credit is more than four working days after the change.
Questions people actually ask
Real questions we get on this provision, answered straight.
We invoiced on 20 September 2025 but delivered and were paid in October, after the rate reset.+
Two of the three events – supply and payment – fall after the change, so the new rate applies and the invoice has to be corrected by a supplementary invoice or credit note. That is section 14(a)(ii).
The exact words of the law
2,184 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
Read the full provision+
(a) in case the goods or services or both have been supplied before the change in rate of tax,-
(i) where the invoice for the same has been issued and the payment is also received after the change in rate of tax, the time of supply shall be the date of receipt of payment or the date of issue of invoice, whichever is earlier; or (ii) where the invoice has been issued prior to the change in rate of tax but payment is received after the change in rate of tax, the time of supply shall be the date of issue of invoice; or (iii) where the payment has been received before the change in rate of tax, but the invoice for the same is issued after the change in rate of tax, the time of supply shall be the date of receipt of payment;
(b) in case the goods or services or both have been supplied after the change in rate of tax,-
(i) where the payment is received after the change in rate of tax but the invoice has been issued prior to the change in rate of tax, the time of supply shall be the date of receipt of payment; or (ii) where the invoice has been issued and payment is received before the change in rate of tax, the time of supply shall be the date of receipt of payment or date of issue of invoice, whichever is earlier; or (iii) where the invoice has been issued after the change in rate of tax but the payment is received before the change in rate of tax, the time of supply shall be the date of issue of invoice: Provided that the date of receipt of payment shall be the date of credit in the bank account if such credit in the bank account is after four working days from the date of change in the rate of tax. Explanation .-For the purposes of this section, "the date of receipt of payment" shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier.
High Court cases on this section
Judgments in our index that cite this provision. Being listed does not make a case good law — it may have been appealed or distinguished since. Read it before relying on it.
M/S.KANDAN HARDWARE MART v. THE ASSISTANT COMMISSIONER (ST) (FAC)
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B.Sivakumar v. State Tax officer, Adjudication Wing
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M/s.Eicher Motors Limited v. Superintendent of GST and Central Excise, Range-II,
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Smt.K.Malathi v. State Tax Officer
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BHUPENDRA SINGH v. STATE TAX OFFICER HALDWANI
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What changed, and when
The amendment trail, newest first — because the version that applies to your case depends on the period.
2017-07-01 · Commenced
Provision as originally enacted in the CGST Act, 2017 (Act 12 of 2017) and brought into force w.e.f. 01-07-2017.
Read this with
A provision rarely works alone. These are the ones it points to.
Where this comes from
Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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