Time of Supply of Services - Reverse Charge (Section 13(3))
# Time of Supply of Services — Reverse Charge (Section 13(3))
For services taxable under reverse charge, TOS is the EARLIER of:
1. Date of payment — taken as earlier of (a) date of entry in recipient's books, or (b) date of debit in recipient's bank account; OR
2. Date immediately following 60 days from the date of issue of invoice by the supplier.
If neither can be determined, TOS = date of entry in books of recipient.
## Special Sub-Rule — Associated Enterprises (Cross-Border)
Where the supplier is located outside India and the recipient and supplier are associated enterprises, TOS = EARLIER of:
Date of entry of the supply in the recipient's books of account, OR
Date of payment.
The 60-day cap does NOT apply in this case.
## Key Differences vs Goods RCM
Feature
Goods RCM
Services RCM
'Date of receipt' limb
Yes
No (no physical receipt for services)
Invoice-based limb
31st day
61st day
Special AE rule
No
Yes (cross-border AE)
Worked example
### Example 1
Example 1: Legal services from advocate (RCM). Invoice dated 1 May; payment debited from bank 10 May; entered in books 8 May. 61st day from invoice = 1 July. Date of payment = MIN(8 May, 10 May) = 8 May. TOS = MIN(8 May, 1 July) = 8 May.
### Example 2
Example 2 — Late payment: Invoice 1 March, payment 15 July. 61st day = 1 May. TOS = MIN(15 July, 1 May) = 1 May (the 60-day cap kicks in).
### Example 3
Example 3 — Associated enterprise: Indian co. receives consultancy from US parent (AE). Entry in recipient's books on 20 Aug; payment remitted 30 Sept. TOS = MIN(20 Aug, 30 Sept) = 20 Aug.
⚠️ Common exam mistakes
Using the goods 'date of receipt' limb for services — services have no physical receipt limb.
Using 31st day (goods rule) instead of 61st day for services.
Forgetting the AE override for cross-border imports of services from related parties.
Applying the AE rule to domestic related parties — it applies only when supplier is outside India.
Bare-Act text Section 13(3) · CGST Act, 2017 · click to expand
Section 13(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 earlier of the following dates, namely — (a) 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 (b) the date immediately following sixty 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), the time of supply shall be the date of entry in the books of account of the recipient of supply. Provided further that in case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier.