Time of supply in case of RCM

[Lav Prajapati]

Dear Expert member Please check this example is correct or not in case of Time of supply of goods under RCM. my concern about calculation of 'Date immediately following 30 days from the date of issue of invoice'

Example - Mint Industries Ltd., a registered supplier, give order of material from Green INC, USA on 13^th August (goods order date). The relevant invoice for $ 1,20,000/- is raised by Green Inc on 18^th August. Mint Industries Ltd. Makes the payment against the said invoice 22^nd September but goods received as on 27^th December.

Provisions Time of supply, earliest of the following dates

• Date of receipt of goods, or
• 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
• Date immediately following 30 days from the date of issue of invoice or any other legal document in lieu of invoice by the supplier.

In this case - As per term Sec. 12 (3), Time of supply, earliest of the following dates :-

• Date of receipt of goods – 27^th December
• Date immediately following 30 days from the date of issue of invoice – 17^th September
• Date of receipt of payment by the supplier- 22^nd September

Therefore, time of supply of goods 17^th September.

[Raam Srinivasan Swaminathan Kalpathi]

This is import of goods through Customs.  Customs duty, SWS and IGST are remitted based on Bill of Entry date.  The importer need not be concerned with IGST time of supply for this.

[Shilpi Jain]

Agreed. Import of goods is not under RCM under GST 

[Ganeshan Kalyani]

RCM not applicable. I agree with the view of the experts.

[KASTURI SETHI]

Dear Querist,

What is the description of goods ?

AI Summary

Time of supply under RCM determined by earliest of receipt, payment, or the post-invoice thirty day rule; import via customs handled separately. Time of supply under RCM is the earliest of: date of receipt of goods, date of payment recorded or debited, or the date immediately following thirty days from the supplier's invoice. In the example, the thirty day post invoice date precedes payment and receipt, and thus constitutes the time of supply. Forum replies note that imports processed through customs are subject to customs taxation mechanics and not domestic RCM timing.