I have paid an advance to supplier of goods , wherein I need pay tax under reverse charge mechanism. Whether time of supply will get attracted upon making of such advance payment. I understand that in regard to goods advances are not subject to GST.
As per Section 12(3) of the CGST Act, 2017 the time of supply under RCM of goods is earliest of the three events viz i) date of receipt of goods ii) date of payment iii) 31st day from date of invoice.
In case advance payment is made it will precede the date of receipt of goods and 31st day from date of invoice and accordingly it will become the time of supply. It is important to note here that relaxation of non payment of GST on advances towards goods, has been provided u/s 12(2) wherein tax is required to be paid by supplier. No such relaxation has been extended to recipients who are required to pay tax under RCM.
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