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CA Final · Indirect Tax Laws · Time of Supply

Sundaram Textiles Ltd., a registered person, receives legal consultancy services from an advocate in Chennai on which it must pay GST under reverse charge. The advocate issued the invoice on 10 January 2026, and Sundaram made the payment on 20 April 2026. The services were provided in January 2026. Ignoring all other provisions, what is the time of supply under section 13(3) of the CGST Act, 2017?

The time of supply is 12 March 2026. For reverse charge services, it is the earlier of the payment date and the day after sixty days from the supplier's invoice. Sixty days from 10 January ends on 11 March, so the next day, 12 March, falls before the 20 April payment.

  1. A10 February 2026, the day following thirty days from the invoice
  2. B11 March 2026, the sixtieth day from the invoice
  3. C12 March 2026, the day immediately following sixty days from the invoiceCorrect
  4. D20 April 2026, the date of payment

Explanation

For reverse charge on services, the time of supply is the earlier of the payment date and the day immediately following sixty days from the supplier's invoice date. Sixty days from 10 January 2026 is 11 March 2026, so the following day is 12 March 2026. Payment on 20 April is later, so 12 March applies. The thirty-day rule applies to goods, not services.

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