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

Under the CGST Act, 2017, which of the following correctly states the time of supply of goods where tax is liable to be paid on reverse charge basis?

For goods supplied under reverse charge, the time of supply is the earliest of the receipt of goods, the payment date as per the recipient's books or bank debit (whichever is earlier), and the day following thirty days from the supplier's invoice date.

  1. AThe earlier of the date of issue of invoice by the supplier or the date of receipt of payment by the supplier
  2. BThe earliest of the date of receipt of goods, the date of payment by the recipient, or the date immediately following thirty days from the date of issue of the supplier's invoiceCorrect
  3. CThe earliest of the date of receipt of goods, the date of payment, or the date immediately following sixty days from the date of invoice
  4. DThe date on which the recipient files his periodical return

Explanation

For reverse charge supply of goods, the time of supply is the earliest of three dates: receipt of goods, date of payment (books or bank debit, whichever is earlier), and the date immediately following thirty days from the supplier's invoice date. The sixty-day period applies to services, not goods, so option 3 is wrong.

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