In case of tax liable to be paid on goods under reverse charge mechanism, the time of
supply shall be the earliest of the following:
(a) Date of receipt of goods by the recipient; or
(b) Date on which the payment is entered in the books of accounts of the recipient;
or
(c) Date on which payment is debited in the bank account of the recipient; or
(d) Date immediately following 30 days from the date of issue of invoice or any other
document, by whatever name called, in lieu thereof by the supplier.
Where the time of supply cannot be ascertained as above, the date of entry in the
books of accounts of the recipient shall be the time of supply of goods.
To illustrate, Mr. A being registered taxable person procures goods from Mr. B who is
unregistered. The chronology of events are as follows:
| Date of receipt of goods by Mr. A | August 16, 2017 | Time of supply shall be August 16, 2017 |
| Date on which the payment is entered in the books of accounts of Mr. A | August 20, 2017 | |
| Date on which payment is debited in the bank account of Mr. A | August 22, 2017 |
In the event, the above details are not available and the date of entry relating to purchase of goods in the books of Mr. A is August 30, 2017, the time of supply of goods will be August 30, 2017.
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME FOR SUPPLY OF GOODS : FAQ NO. 6)