Time of Supply explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
When you pay GST on reverse charge, the month in which the liability arises is fixed by the recipient's dates, not the supplier's. The tests for goods (section 12(3)) and services (section 13(3)) are different, and the services rule was changed from 1 November 2024. Getting the month wrong means tax paid late, with interest.
For goods under reverse charge, the time of supply is the earliest of the date of receipt of goods, the date of payment, and the day after 30 days from the supplier's invoice date (section 12(3)). For services, it is the earlier of the date of payment, the day after 60 days from the supplier's invoice date, or, where the recipient must issue the invoice, the date of the recipient's invoice (section 13(3)). If none can be fixed, it is the date the recipient records the supply in his books.
Goods under reverse charge: section 12(3)
Reverse charge on goods arises under section 9(3) or 9(4). The source lists items notified under section 9(3), including cashew nuts (not shelled or peeled), tobacco leaves, raw cotton, silk yarn, lottery, used vehicles, seized and confiscated goods, old and used goods, waste and scrap, and metal scrap when supplied by specified persons. The time of supply is the earliest of:
- (a) the date of receipt of the goods;
- (b) the date of payment, being the date it is entered in the recipient's books or the date it is debited in his bank account, whichever is earlier; or
- (c) the date immediately following 30 days from the date of issue of the supplier's invoice.
If none of these can be determined, the date of entry in the recipient's books is the time of supply.
The source example: an agriculturist supplies raw cotton under reverse charge. Mr. Y receives the goods on 10 April 2026, the supplier invoices on 15 April, and Mr. Y pays by cheque, entered in his books on 20 April and debited on 25 April. The candidates are 10 April (receipt), 20 April (payment) and 16 May (15 April plus 30 days plus one day). The earliest is 10 April 2026.
Services under reverse charge: section 13(3)
Since 1 November 2024, section 13(3) reads as the earlier of:
- (a) the date of payment (books entry or bank debit, whichever is earlier);
- (b) the date immediately following 60 days from the date of the supplier's invoice or document in lieu, where the supplier has to issue the invoice; or
- (c) the date of issue of the recipient's invoice, where the recipient has to issue it.
If these cannot be applied, the time of supply is the date of entry in the recipient's books. For services there is no "date of receipt" test, which is a real difference from goods.
The recipient's invoice comes from section 31(3)(f): a registered person liable under section 9(3) or 9(4) must issue an invoice for supplies from an unregistered supplier. Rule 47A, inserted with effect from 1 November 2024, requires it within 30 days from the date of receipt of the supply. So a self-invoice is now a timing event, not just paperwork.
If your invoices and payment entries are not reconciled every month, see how GST return filing support can keep the reverse charge table in GSTR-3B aligned with these dates.
Worked examples for services
| Case | Key dates | Time of supply |
|---|---|---|
| Advocate's invoice (supplier invoices) | Service 10 Apr 2026; invoice 12 Apr; payment entered 10 Jul, debited 15 Jul | 12 June 2026: 61st day after invoice beats 10 July payment |
| Unregistered supplier (recipient self-invoices) | Service 10 Apr 2026; self-invoice 12 Apr; payment entered 20 Apr, debited 25 Apr | 12 April 2026: self-invoice date beats 20 April payment |
| Advance paid to supplier | Invoice 31 Oct 2025; payment 5 Nov 2025 | 5 November 2025 (source summary table) |
| Delayed payment | Invoice 31 Oct 2025; payment 10 Jan 2026 | 31 December 2025: 61st day after invoice (source summary table) |
Note the first row. The source counts the 60 days and then adds one day, so 12 April plus 61 days is 12 June.
Associated enterprises outside India
There is a separate proviso for supply of service by an associated enterprise where the supplier is located outside India. There, the time of supply is the date of entry in the recipient's books or the date of payment, whichever is earlier, and the 60-day rule gives no extra time. In the source table, an invoice of 31 October 2025 from an overseas associated enterprise, with the recipient booking the service on 31 March 2026 and paying on 5 April 2026, gives a time of supply of 31 March 2026. "Associated enterprise" has the meaning given in section 92A of the Income-tax Act, 1961, through section 2(12).
Points that catch people
- The rule applies only to supplies under section 9(3) or 9(4). Tax payable by an e-commerce operator is outside the definition of reverse charge in section 2(98).
- The recipient paying tax on reverse charge issues a payment voucher when making payment. See payment voucher format for RCM.
- Credit on reverse charge tax has its own timing and conditions. See ITC on reverse charge.
- The residual rule (section 12(5) or 13(5)) applies only when these tests truly cannot be applied.
For an overview of what qualifies, see the complete RCM guide.
Need help with reverse charge reporting?
Missed self-invoices and late RCM payments are common sources of interest and notices. We can help map your RCM supplies against these dates and file them correctly through our GST return filing service. If you want the past period checked, a GST health check can pick up timing errors.
Key takeaways
- Goods under RCM: earliest of receipt of goods, payment, and the day after 30 days from supplier's invoice.
- Services under RCM: earlier of payment, the day after 60 days from supplier's invoice, or the recipient's invoice date.
- From 1 November 2024, the recipient's self-invoice date is a time-of-supply trigger; Rule 47A gives 30 days to issue it.
- Associated enterprises abroad get no 60-day period: books entry or payment, whichever is earlier.
- If no date can be fixed, the date of entry in the recipient's books applies.
Read next
- Time of supply of services: invoice, advance and payment
- GST on vouchers after Finance Act 2025
- Import of services under GST: reverse charge and ITC
- Blocked credit and reverse charge
Disclaimer: Positions stated as on 30 September 2026, based on the CGST and IGST Acts and Rules as amended, the Finance Act 2026, and the ICAI Background Material on GST (14th Edition, July 2026). Verify current notifications before acting.