Taxation · Time of Supply

Time of Supply of Goods under Reverse Charge (Section 12(3))

Updated 4 October 2026 · Fact-checked

Under Section 12(3) of the CGST Act, 2017, time of supply of goods on reverse charge is the earliest of three dates: receipt of the goods, payment (books entry or bank debit, whichever is earlier), or the day after 30 days from the supplier's invoice date. If none can be fixed, use the date of entry in the recipient's books.

Understand Time of Supply of Goods under Reverse Charge

Time of supply decides when GST becomes payable. This fixes the tax period, the return in which you report the supply, and the date from which interest runs if you pay late.

Under forward charge, the supplier pays the tax, so the rules look at the supplier's invoice and payment received. Under reverse charge (RCM), the recipient pays the tax. So Section 12(3) looks at what the recipient does: receives the goods, makes the payment, or lets 30 days pass after the supplier's invoice.

RCM on goods applies in two broad cases: goods notified for reverse charge (for example, from an agriculturist), and notified supplies by an unregistered person to a registered person. In many such cases the supplier issues no invoice, so the recipient must issue one. The 30-day limb works only when the supplier has issued an invoice or an equivalent document.

The rule is simple: list every date that applies, then pick the earliest. If none of the three dates can be determined, a fallback applies: the date the recipient enters the supply in his books of account.

If even that cannot fix the date, the general residual rule applies. Use the due date of the periodical return where one is required. In any other case, use the date on which the tax is paid.

Key rules to remember

Time of supply of goods under RCM (Section 12(3)): Time of supply = earliest of (a) date of receipt of goods, (b) date of payment, (c) date immediately following 30 days from the date of supplier's invoice; Take the earliest of the dates that exist. If a date is not available, ignore it.
Date of payment (clause b): Date of payment = earlier of (date of entry in recipient's books, date of debit in recipient's bank account); Both dates are about the recipient's side of the payment. Choose the earlier one.
30-day invoice limb (clause c): Date = invoice date + 30 days + 1 day; The 30 days are counted from the date of the supplier's invoice (or equivalent document). The relevant date is the day after the 30th day.
Fallback when a, b, c cannot be determined: Time of supply = date of entry in the recipient's books of account; Use it only when clauses (a), (b) and (c) cannot fix the date.
General residual rule: Periodical return required: due date of return. Otherwise: date on which CGST/SGST is paid; This applies where the time of supply cannot be determined under the specific clauses.

How to solve Time of Supply of Goods under Reverse Charge questions

Use this method for any question on goods supplied under reverse charge. Write each step in the answer so you earn step marks.

1Confirm that tax is payable on reverse charge, and that the supply is of goods. If it is forward charge, Section 12(2) applies instead.
2List the dates given: supplier's invoice date, date goods were received, date payment was entered in the books, and date payment was debited in the bank.
3Find the date of payment: pick the earlier of the books-entry date and the bank-debit date.
4Compute the 30-day date, but only if the supplier issued an invoice or equivalent document: invoice date + 30 days, then add one more day. If the recipient issued the invoice (for example, an unregistered supplier), skip this limb.
5Compare the receipt date, the payment date and the 30-day date. The earliest is the time of supply.
6If none of the three dates can be determined, take the date of entry in the recipient's books. If still undetermined, use the residual rule.
7State the conclusion clearly with the section reference: 'Time of supply under Section 12(3) is ...'. Then add what follows, such as the tax period for payment, if asked.

Quickest way: Earliest-of-three table for MCQs and written answers

When to use it: Use this for every date-based MCQ and for the working in a written answer under exam time pressure.

Check the supply is under RCM. If a normal supplier charges tax, the question is a forward-charge one.
Write three lines: Receipt = ___, Payment = ___ (earlier of books and bank), Invoice + 30 days + 1 = ___.
Strike out any line with no data. Circle the earliest date. That is your answer.
For MCQs, the trap options are usually the invoice date itself, the later payment date, or the 30th day instead of the day after. Eliminate these first.
In a written answer, show the three-line table in a sentence each, name Section 12(3), and give the conclusion in one line. This earns the step marks even if the final date has a slip.

Common mistakes in Time of Supply of Goods under Reverse Charge

Taking the invoice date as the time of supply under RCM.
Students carry over the forward-charge idea that invoice date matters most.
Fix: Under Section 12(3), the invoice only matters through the 30-day limb. The date to use is the day after 30 days from the invoice date, not the invoice date.
Using the 30th day itself instead of the day after it.
Students count '30 days from invoice' and stop there.
Fix: The law says 'the date immediately following thirty days'. Add one more day. For an invoice dated 10 March, the date is 10 April.
Choosing the later of books entry and bank debit as the payment date.
Students think payment is complete only when the money leaves the bank.
Fix: Clause (b) says whichever is earlier. Always pick the earlier of the two.
Applying the 30-day limb when the recipient issued the invoice.
Students see an 'invoice' in the question and apply clause (c) automatically.
Fix: Clause (c) refers to the supplier's invoice or equivalent document. If an unregistered supplier issued none and the recipient raised it, ignore clause (c).
Picking one date instead of the earliest of all available dates.
Students stop at the first date that looks right, such as receipt of goods.
Fix: Write all three dates and compare. The time of supply is the earliest, even if payment or the 30-day date comes before receipt.
Applying the fallback of books entry when the three dates are available.
Students remember the proviso and use it too early.
Fix: The books-entry fallback applies only if it is not possible to determine the time of supply under clauses (a), (b) or (c).

Worked examples

Example 1

A registered person buys goods from an agriculturist, a supply on which tax is payable by the recipient under reverse charge. The supplier issues no invoice. The goods are received on 8 July. The payment is entered in the recipient's books on 3 July and debited in his bank account on 5 July. Find the time of supply under Section 12(3).

Show the solution

The supply is of goods on reverse charge, so Section 12(3) applies.
Date of receipt of goods = 8 July.
Date of payment = earlier of books entry (3 July) and bank debit (5 July) = 3 July.
The supplier issued no invoice, so the 30-day limb in clause (c) does not apply.
Earliest of 8 July and 3 July = 3 July.

Answer: Time of supply is 3 July, the date of payment as entered in the books.

Example 2

A registered person receives goods on which tax is payable on reverse charge. The supplier's invoice is dated 10 March. The goods are received on 15 April. The payment is entered in the books and debited in the bank on 20 April. Find the time of supply.

Show the solution

Section 12(3) applies because tax is payable on reverse charge.
Date of receipt of goods = 15 April.
Date of payment = 20 April (books and bank dates are the same).
30-day date: 30 days from 10 March ends on 9 April. The date immediately following is 10 April.
Compare 15 April, 20 April and 10 April. The earliest is 10 April.

Answer: Time of supply is 10 April, the day after 30 days from the supplier's invoice date.

Exam tips

Always start by writing 'Section 12(3) applies as tax is payable on reverse charge'. It earns a mark for identifying the provision.
Show the date of payment as the earlier of the books and bank dates. Examiners often give both dates to test this.
Check the month lengths carefully when adding 30 days. A one-day slip changes the answer and is a common way marks are lost.
Read the question for who issued the invoice. If it is the recipient, the 30-day limb is not available.
In MCQs, work out the three dates quickly on rough paper. The options usually include the invoice date, the 30th day and the earliest date, so pick the earliest.

Practice questions from Time of Supply

Time of Supply of Goods under Reverse Charge in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Time of Supply of Goods under Reverse Charge: frequently asked questions

What is the time of supply of goods under reverse charge?

It is the earliest of three dates under Section 12(3): the date of receipt of the goods, the date of payment, and the date immediately following 30 days from the date of the supplier's invoice. Where none of these can be determined, the date of entry in the recipient's books applies.

How do I count the 30 days from the invoice date?

Add 30 days to the invoice date. The time of supply under this limb is the next day. For an invoice dated 10 March, 30 days end on 9 April, so the relevant date is 10 April.

What is the time of supply when an unregistered person supplies goods and issues no invoice?

If tax is payable by the recipient on reverse charge, the 30-day invoice limb does not work, as there is no supplier's invoice. Take the earlier of the date of receipt of goods and the date of payment. If neither can be determined, use the date of entry in the recipient's books.

Which payment date counts for reverse charge, the books entry or the bank debit?

Take whichever is earlier. The law refers to the date of payment as entered in the recipient's books of account or the date it is debited in his bank account, whichever is earlier.