Time of Supply of Goods
Section 12, CGST Act
Straight from CBIC
Official source, not a summary of a summary
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Amendment history
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In one line
GST on goods becomes payable at the time of supply – the earlier of the invoice date (or the last date it should have been issued) and the date of payment. Under reverse charge it is the earliest of receipt of goods, payment, or the 31st day from the supplier’s invoice.
What this means in practice
The parts that actually decide cases — the things a practitioner checks first.
Forward charge: the earlier of the invoice (or the last date on which it should have been issued under section 31) and the date of payment. Since 15-11-2017 the receipt of an ADVANCE for goods does not trigger tax for most taxpayers – Notification 66/2017-Central Tax – so goods are taxed on invoice.
Reverse charge: the earliest of receipt of goods, date of payment, or the thirty-first day from the supplier’s invoice.
Voucher timing was moved out of section 12 by the Finance (No.7) Act 2025 – vouchers are dealt with separately now; do not apply the old 12(4) to a voucher issued after that change took effect.
Interest, late fee or penalty for delayed payment is taxed when it is actually received, not when it accrues.
Questions people actually ask
Real questions we get on this provision, answered straight.
Do we pay GST on an advance received for goods?+
No, for most suppliers. Notification 66/2017-Central Tax removed the advance-receipt trigger for goods, so tax is due on the invoice. The exception is a composition taxpayer, and advances for SERVICES remain taxable on receipt.
How this provision is built
The skeleton, clause by clause — useful when a notice cites a specific sub-clause.
The exact words of the law
2,638 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
Read the full provision+
(1) The liability to pay tax on goods shall arise at the time of supply, as determined in accordance with the provisions of this section.
(2) The time of supply of goods shall be the earlier of the following dates, namely:-
(a) the date of issue of invoice by the supplier or the last date on which he is required, under 1 [****] section 31 , to issue the invoice with respect to the supply; or
(b) the date on which the supplier receives the payment with respect to the supply: Provided that where the supplier of taxable goods receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount. Explanation 1 .- For the purposes of clauses
(a) and (b), "supply" shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment. Explanation 2. – For the purposes of clause (b), "the date on which the supplier receives the payment" shall be the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account, whichever is earlier.
(3) In case of supplies 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: Provided that where it is not possible to determine the time of supply under clause
(a) or clause
(b) or clause (c), the time of supply shall be the date of entry in the books of account of the recipient of supply.
(4) 2 [****]
(5) Where it is not possible to determine the time of supply under the provisions of sub-section
(2) or sub-section
(3) or sub-section (4), the time of supply shall-
(a) in a case where a periodical return has to be filed, be the date on which such return is to be filed; or
(b) in any other case, be the date on which the tax is paid.
(6) The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.
High Court cases on this section
Judgments in our index that cite this provision. Being listed does not make a case good law — it may have been appealed or distinguished since. Read it before relying on it.
M/s. Eureka Systems and Electrodes (P) LTD v. The Assistant Commissioner (ST)
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M/s. Eureka Systems and Electrodes (P) LTD v. The Assistant Commissioner (ST)
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Sri Avantika Contractors (I) Limited, v. Appellate Authority for Advance Ruling (GST),
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What changed, and when
The amendment trail, newest first — because the version that applies to your case depends on the period.
date not stated · Omitted
Omitted " sub-section (1) of " by s. 6 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2 …
date not stated · Omitted
Omitted (w.e.f. 01.10.2025) "In case of supply of vouchers by a supplier, the time of supply shall be- (a) the date of issue of voucher, if the supply is identi …
Where this comes from
Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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