Goods and Services Tax (GST) and Corporate Tax Planning · Time of Supply

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

Updated 11 October 2026 · Fact-checked

Under Section 12(3) of the CGST Act, when tax on goods is payable on reverse charge, the time of supply is the earliest of three dates: the date you receive the goods, the date of payment (books entry or bank debit, whichever is earlier), or the day after 30 days from the supplier's invoice date.

Understand Time of Supply of Goods under Reverse Charge

Tax on a supply becomes payable at the time of supply. Normally the supplier pays the tax. Under reverse charge, the recipient pays it instead. So the law gives a separate test for when the recipient's liability arises.

Section 12(3) applies to goods where tax is paid or liable to be paid on reverse charge. It looks at the recipient's side of the deal, not the supplier's side. There are three candidate dates: when the goods are received, when the recipient pays, and the day immediately after 30 days from the supplier's invoice (or any document in lieu of it).

The time of supply is the earliest of these three dates. This is different from Section 12(2) for forward charge, which looks at the invoice date (or last date to issue it) and the supplier's receipt of payment.

The payment date has its own rule. It is the date the payment is entered in the recipient's books of account or the date it is debited in his bank account, whichever is earlier.

There is a fallback. If the time of supply cannot be fixed under clause (a), (b) or (c), it is the date of entry in the recipient's books of account. Section 12(5) is a further residual rule, but the proviso to 12(3) is the first fallback for reverse charge goods.

Key rules to remember

Time of supply, goods, reverse charge (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 date of invoice; Applies only when tax is paid or liable to be paid on reverse charge.
Date of payment for clause (b): Date of payment = earlier of (date entered in recipient's books) and (date debited in recipient's bank account); It is the recipient's books and bank, not the supplier's.
30-day date for clause (c): Clause (c) date = invoice date + 31 days; The date 'immediately following thirty days'. An invoice dated 1 July gives 1 July + 30 days = 31 July, and the date is 1 August.
Fallback proviso: If (a), (b) and (c) cannot be determined, time of supply = date of entry in recipient's books of account; Rarely used. Check that an invoice exists before applying it.

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

Use this method for any question on goods received under reverse charge.

1Confirm that the supply is goods and that tax is payable on reverse charge by the recipient. If it is forward charge, use Section 12(2) instead.
2List the dates given: invoice date, date goods were received, date of payment entry in books, and date of bank debit.
3Fix the payment date for clause (b): take the earlier of the books entry and the bank debit.
4Compute the clause (c) date: add 30 days to the invoice date and take the next day.
5Write down all three dates: receipt of goods, payment date, and the 30-day date.
6Pick the earliest. That is the time of supply.
7Apply it to the extent covered: if the payment or receipt is partial, the supply is treated as made only to that extent.
8State the conclusion with the section reference, and note the due date for any tax liability that follows.

Quickest way: Three dates, pick the earliest

When to use it: When the question gives all dates and asks only for the time of supply of goods under reverse charge.

Mark the receipt date of goods.
Mark the earlier of books entry and bank debit for payment.
Add 31 days to the invoice date.
Choose the smallest date and write 'Section 12(3)' beside it.

Common mistakes in Time of Supply of Goods under Reverse Charge

Using the supplier's invoice date as the time of supply, as in forward charge.
Section 12(2) is learnt first and students apply it to every case.
Fix: Check who pays the tax. If it is the recipient, use Section 12(3) and compare all three dates.
Taking the 30th day from the invoice as the date in clause (c).
The words 'immediately following thirty days' are read loosely.
Fix: Count 30 days from the invoice date and then take the next day. That is invoice date + 31 days.
Using the later of books entry and bank debit as the payment date.
Students confuse it with a 'date of actual payment' idea.
Fix: The payment date is whichever is earlier: the books entry or the bank debit.
Applying the 60-day rule of services to goods.
Section 13(3) is similar in layout and the two get mixed up.
Fix: For goods under reverse charge the period is 30 days. For services under Section 13(3) it is 60 days.
Choosing the latest of the three dates or the date of invoice only.
Students remember 'three dates' but forget the word 'earliest'.
Fix: Write 'earliest of three' in your answer before you compute.
Ignoring partial payment or partial receipt.
Students treat the whole supply as made on the first date.
Fix: Apply the time of supply separately to the portion covered by the receipt, payment or invoice.

Worked examples

Example 1

Dev Traders Ltd., Pune, receives goods from an unregistered supplier on 12 March. The goods are subject to reverse charge. The supplier's invoice is dated 5 March. The company enters the payment in its books on 20 March and the amount is debited in its bank on 22 March. Find the time of supply.

Show the solution

Reverse charge applies to goods, so Section 12(3) applies.
Date of receipt of goods (clause a): 12 March.
Payment date (clause b): earlier of books entry 20 March and bank debit 22 March, so 20 March.
Clause (c): 30 days from 5 March ends on 4 April. The date immediately following is 5 April.
The three dates are 12 March, 20 March and 5 April. The earliest is 12 March.

Answer: The time of supply is 12 March, the date of receipt of the goods.

Example 2

Kaveri Industries Ltd., Chennai, is liable to pay GST on reverse charge for goods. The supplier issues an invoice on 10 January. The goods reach Kaveri's premises on 15 February. The payment is debited in the bank on 25 January, but Kaveri entered it in its books on 20 January. Find the time of supply.

Show the solution

Section 12(3) applies because tax is on reverse charge.
Date of receipt of goods (clause a): 15 February.
Payment date (clause b): earlier of books entry 20 January and bank debit 25 January, so 20 January.
Clause (c): 30 days from 10 January ends on 9 February. The date immediately following is 10 February.
The three dates are 15 February, 20 January and 10 February. The earliest is 20 January.

Answer: The time of supply is 20 January, the date the payment is entered in the books.

Exam tips

Write the section number, the three limbs and the word 'earliest' at the start of your answer. This earns marks even if the dates go wrong.
List all three dates in a small column before choosing. Examiners check each date.
Compute the 30-day date carefully. Count the days, then add one. Months of 30 and 31 days cause errors.
Note the contrast with Section 12(2) and with the 60-day rule for services in one line if the question compares them.
If the facts say a part payment was made, state the time of supply for that part and for the balance separately.

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 goods, the date of payment, and the date immediately following 30 days from the supplier's invoice date. The payment date is the earlier of the books entry and the bank debit.

How do I calculate the 30-day date from the invoice?

Count 30 days from the date of the invoice and then take the next day. So the date is invoice date plus 31 days. For an invoice dated 5 March, it is 5 April.

What if none of the three dates can be determined?

The proviso to Section 12(3) says the time of supply is then the date of entry in the books of account of the recipient. This applies only where clauses (a), (b) and (c) fail.

How is this different from reverse charge on services?

For services, Section 13(3) uses payment and a 60-day period from the invoice. There is also a clause on invoices issued by the recipient. For goods, the three tests are receipt of goods, payment and the 30-day date.