Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee

Law Related Issues

29. Time of supply of goods and services under RCM

Section 12(3) of the CGST Acts provides that in case of supplies of goods in respect of
which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be
the earliest of the following dates, namely—
(a) the date of the receipt of goods; or
(b) the date of payment as entered in the books of account of the recipient or the date on
which the payment is debited in his bank account, whichever is earlier; or
(c) the date immediately following thirty days from the date of issue of invoice or any other
document, by whatever name called, in lieu thereof by the supplier:
(d) However, as per section 13(3) of the CGST Acts provides that in case of supplies of
services, the time of supply shall be the earlier of the following dates, namely-
(e) the date of payment as entered in the books of account of the recipient or the date on
which the payment is debited in his bank account, whichever is earlier; or
(f) the date immediately following sixty days from the date of issue of invoice or any other
document, by whatever name called, in lieu thereof by the supplier:

Issue
The time period of 30/60 days from the date of issue of invoice by the supplier is quite short
considering the time taken for delivery of goods with invoice and may create unnecessary
interest liability if payment is not made within 30 or 60 days.
Suggestion
It is suggested that the time limit prescribed in both the cases be made 90 days in line with
the current provision of service tax.

Read Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee

Related Topic on GST