Time of Supply in Case of Reverse Charge

Last updated at Dec. 16, 2024 by

When do we have to Deposit Reverse Charge? At time of Bill or Payment
Suppose Invoice is of Jan and Payment is Made in April
Shall we show Reverse Charge Output and Input in Jan Return or April Return?
 
 
in this case, we do not see either Invoice Date or Payment Date
We calculate Time of Supply
 
 
Time of Supply in case of Services
Reverse Charge payable on earlier of
  • 61 days of Invoice
  • Date of Payment

 

Example

time of Supply in case of services.jpg

Time of Supply in case of Goods
Reverse Charge payable on earlier of
  • 31 days of Invoice
  • Date of Receipt of Goods
  • Date of Payment

Example

time of supply goods.png

Summary
From above, we can see that if we have received bill but not made payment, 
 
We have 61 days time to deposit Reverse Charge in case of Services
(as we take earlier of 61 days of Invoice and Date of payment)
 
 
But in case of goods, we do not have time as we have received the goods
(as we take earlier of date of receipt,31 days of Invoice and Date of payment)

 

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Transcript

Services covered in Rev Charge Reverse Charge Bill of When do we pay Reverse Charge On bill Or Payment ? Neither Bill Nor Payment It is Paid as per Time of Supply 1 Jan Payment to Party 1 Apr Time of Supply in case of Services 61 Days of invoice 2 Mar Date of Payment 1 Apr Earlier We show Reverse Charge Output Input in March + 61 2 Mar Time of Supply in Case of Services It is Earlier of 61 Days of Invoice Date of Payment Services covered in Rev Charge Reverse Charge Bill of When do we pay Reverse Charge On bill Or Payment ? Neither Bill Nor Payment It is Paid as per Time of Supply 1 Jan Payment to Party 1 Apr Time of Supply in case of Services 61 Days of invoice 2 Mar Date of Payment 1 Apr Earlier We show Reverse Charge Output Input in March + 61 2 Mar Time of Supply in Case of Services It is Earlier of 61 Days of Invoice Date of Payment

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.