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CA Intermediate · Taxation · Time of Supply

Gupta Textiles of Delhi, a registered person, is liable to pay tax under reverse charge on goods received from an unregistered supplier. The goods were received on 8 March 2026, payment was made on 20 March 2026 and the supplier's invoice is dated 5 March 2026. Under the CGST Act, what is the time of supply of the goods under reverse charge?

The time of supply is 8 March 2026, the date of receipt of goods. Under reverse charge for goods, the earliest of receipt of goods, payment date, and the day after 30 days from the supplier's invoice date applies, and receipt is earliest.

  1. A5 March 2026, the date of the supplier's invoice
  2. B8 March 2026, the date of receipt of goodsCorrect
  3. C20 March 2026, the date of payment
  4. DThe date 30 days after receipt of goods

Explanation

Under reverse charge for goods, time of supply is the earliest of the date of receipt of goods, the date of payment (as entered in books or debited in bank, whichever is earlier), and the date immediately following 30 days from the invoice date. Here receipt is 8 March, payment is 20 March and 30 days from 5 March ends in April. The earliest is 8 March. The invoice date itself is not a trigger.

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