Time of Supply under Reverse Charge

Time of supply (for Goods) under Reverse Charge (RCM)

In case of reverse charge, the time of supply shall be the earliest of the following dates, namely: —

(a) the date of receipt of goods; OR

(b) the date of payment as entered in the books of account of the recipient OR the date on which the payment is debited in his bank account, whichever is earlier; OR

(c) the date immediately after THIRTYdays from the date of issue of invoice by the supplier (60 days for services)

If it is not possible to determine the time of supply under (a), (b) or (c), the time of supply shall be the date of entry in the books of account of the recipient.

Example:

(a) Date of receipt of goods: 10^th May 2020

(b) Date of payment entered in books of account: 25^th May 2020 OR Date of payment debited in the bank accounts: 28^th May 2020

(c) Date of invoice 15^th May 2020

So, Time of supply of shall be: 10^th May 2020

If for some reason time of supply could not be determined supply under (a), (b) or (c) then it would be 25^th May 2020 i.e., date of entry

Time of supply (for Services) under Reverse Charge (RCM)

In case of reverse charge, the time of supply shall be the earlier of the following dates, namely: –

(a) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is lower; OR

(b) the date immediately after SIXTY days from the date of issue of invoice (30 days for goods)

If it is not possible to determine the time of supply under clause (a) or clause (b), the time of supply shall be the date of entry in the books of account of the recipient.

In case of associated enterprises located outside India:

In case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply shall be earliest of the following dates, namely:

(a) the date of entry in the books of account of the recipient of supply or

(b) the date of payment