How to determine time of supply for GST payable under reverse charge in India

 

 

4 situations when GST payable under reverse charge in India

 

What is Reverse Charge under GST Law

 

How to determine time of supply for GST payable under reverse charge in IndiaAs per GST Law, Reverse Charge under GST means the liability to pay tax by the person receiving goods and / or services instead of the person supplying the goods and / or services in respect of such categories of supplies as the Central or a State Government may, on the recommendation of the Council, by notification, specify; Section 2(34) “Council” means the Goods and Services Tax Council established under Article 279A of the Constitution.

How is time of supply determined under service in case of tax payable under reverse charge?

According to GST Law, the time of supply will be the earliest of the following dates:

a) date of receipt of services

b) date on which payment is made

c) date of receipt of invoice

d) date of debit in the books of accounts by supplier.

Let us discuss the determination of time of supply under reverse charge with a simple and easy understanding example:

A supplied a service to B on 11th January. B received the said service on 14th January. However, B received invoice against the said supply on 12th January and supplier debited the said amount on 13th of January. Here in this example, what would be the date of tax payable under reverse charge as per GST Law in India? Since the time of supply will be earliest of date of receipt of services, date on which payment is made, date of receipt of invoice and date of debit in the books of accounts by supplier, the time of supply under this example is on 11th January.

Let us explain with another example to determine GST time of supply of service under reverse charges:

A supplied a service to B on 11th January. B received the said service on 12th January. However, B received invoice against the said supply on 10th January and supplier debited the said amount on 11th of January. Here in this example, what would be the date of tax payable under reverse charge as per GST Law in India? Since the time of supply will be earliest of date of receipt of services, date on which payment is made, date of receipt of invoice and date of debit in the books of accounts by supplier, the time of supply under this example is on 10th January.

This post explains about the determination of time of supply under reverse charges as per GST Law of India. I hope the example provided above to illustrate on determination of time of supply of services under reverse charges as per GST Law satisfies you.

If you would like to add more information about determination of time of supply under reverse charges of GST Law in India, share below your thoughts:

 

 

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Comments


thirunavukkarasu: could you please attach list of goods which comes under REVERSE CHARGE MECHANISM under gst

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