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CA Final · Indirect Tax Laws · Supply under GST

Gomti Agro Pvt. Ltd., a registered person, receives goods on reverse charge basis from an unregistered supplier. The goods are received on 18 June. The supplier's invoice is dated 10 June. Gomti pays the supplier on 25 June, and the payment is debited in its bank account the same day. Under Section 12(3) of the CGST Act, 2017, the time of supply is:

The time of supply is 18 June. For reverse charge supplies of goods, Section 12(3) takes the earliest of the date of receipt of goods, the date of payment, and the day after thirty days from the invoice date. Receipt on 18 June is the earliest of these.

  1. A10 June, the date of the supplier's invoice
  2. B18 June, the date of receipt of goodsCorrect
  3. C25 June, the date of payment
  4. D10 July, the date immediately following thirty days from the invoice date

Explanation

Under Section 12(3), for reverse charge supplies the time of supply is the earliest of: date of receipt of goods (18 June), date of payment (25 June), and the day after 30 days from the invoice date (11 July for a 10 June invoice). The earliest is 18 June. The invoice date alone is not a trigger.

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