Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Section 12, verbatim (show)
Section 12
* Section 12. Time of Supply of Goods .-
(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.
*Enforced w.e.f 01st July, 2017.
1. 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, 2019.
2. 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 identifiable at that point; or (b) the date of redemption of voucher, in all other cases." by s. 122 of the Finance (No. 7 of 2025) Act, 2025.
12(1)Liability follows supply timing
The liability to pay tax on goods shall arise at the time of supply, as determined in accordance with the provisions of this section.Section 12(1)
Section 9 provides the levy context for the supply of goods. The following sub-sections select the date by reference to ordinary charge, reverse charge or the specified residual circumstances.
Sub-section (2)
12(2)(a) and (b)Ordinary invoice and payment comparison
The time of supply of goods shall be the earlier of the following datesSection 12(2)(a) and (b)
The invoice limb uses actual issue or the last date for issuing the invoice under section 31. That invoice timing is compared with the supplier's receipt of payment. The following proviso and Explanations qualify the comparison.
12(2), provisoSmall excess-payment option
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 amountSection 12(2), proviso
The supplier may choose the invoice date only for the excess amount within the stated ceiling. The option qualifies the ordinary comparison in sub-section (2).
Questions to answer on the file4 questions
12(2), Explanation 1Extent of supply
"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.Section 12(2), Explanation 1
The deeming applies to the invoice and payment limbs of sub-section (2). Each document or payment determines the extent covered by that event.
12(2), Explanation 2Date of supplier payment receipt
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.Section 12(2), Explanation 2
The comparison uses the supplier's books and bank account. The earlier event supplies the payment date for clause (b).
12(3) and provisoReverse-charge comparison
the time of supply shall be the earliest of the following datesSection 12(3) and proviso
The recipient compares goods receipt, payment and the day immediately after thirty days from the supplier's invoice or equivalent document. Payment itself is the earlier of entry in the recipient's books and bank debit. Only if those limbs cannot determine the time does the recipient-books entry fallback apply.
Questions to answer on the file4 questions
12(5)(a) and (b)Residual timing
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 shallSection 12(5)(a) and (b)
Sub-sections (2) and (3) take priority, and this residual rule applies only where the preceding rules cannot determine timing. A required periodical return gives the date on which it is to be filed. In other cases, the tax-payment date applies.
12(6)Delayed-consideration additions
shall be the date on which the supplier receives such addition in value.Section 12(6)
Interest, late fee or penalty must relate to delayed payment of consideration and form an addition to value. The receipt date governs that added portion of the supply.
Questions to answer on the file2 questions
Other questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Scope the section as a whole
Questions to answer on the file1 question
The residual rule 12(5)
Questions to answer on the file2 questions
Frequently asked questions
What payment date applies to the ordinary rule?
The earlier of entry in the supplier's books and bank credit applies. That date is compared with the invoice limb in sub-section (2).
Section 12(2), Explanation 2
Does reverse charge use recipient-books entry as its first rule?
No. The earliest-of test first compares goods receipt, payment and the invoice-based thirty-day limb. The recipient-books entry fallback applies only if those limbs cannot determine timing.
Section 12(3)
When is a delayed-payment addition timed?
The supplier's receipt of the addition fixes timing for that portion. The addition must be interest, late fee or penalty for delayed payment of consideration.
Section 12(6)
Amendment history
The CBIC text carries 2 footnotes. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Change |
|---|---|
| 1 | 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, 2019.[2] |
| 2 | 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 identifiable at that point; or (b) the date of redemption of voucher, in all other cases." by s. 122 of the Finance (No. 7 of 2025) Act, 2025.[3] |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 31 | this provision requires Section 31 | 12(2)(a) "the last date on which he is required, under section 31, to issue the invoice" |
| Section 9 | 12(3) branches on Section 9(3) and S9(4) | 12(3) "in respect of which tax is paid or liable to be paid on reverse charge basis" |
| Section 39 | Section 39 requires this provision | the period in which the supply is returned follows from its time of supply |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (4)
| Number | Date | Subject |
|---|---|---|
| Circular No. 108/27/2019-GST | 18 July 2019 | which seeks to clarify issues regarding procedure to be followed in respect of goods sent / taken out of India for exhibition or on consignment basis for export promotion. |
| Circular No. 103/22/2019-GST | 28 June 2019 | Clarification regarding determination of place of supply in certain cases-reg. |
| Circular No. 48/22/2018-GST | 14 June 2018 | Circulars clarifying miscellaneous issues related to SEZ and refund of unutilized ITC for job workers. |
| Circular No. 38/12/2018-GST | 26 March 2018 | Clarifications on issues related to Job Work. |
Notifications (4)
| Number | Date | Subject |
|---|---|---|
| Notification No. 66/2017-Central Tax | 15 November 2017 | Seeks to exempt all taxpayers from payment of tax on advances received in case of supply of goods amended by a later instrument |
| Notification No. 40/2017-Central Tax | 13 October 2017 | Seeks to make payment of tax on issuance of invoice by registered persons having aggregate turnover less than Rs 1.5 crores |
| Notification No. 17/2017-Central Tax | 27 July 2017 | Seeks to amend the CGST Rules, 2017. |
| Notification No. 10/2017-Central Tax | 28 June 2017 | Seeks to amend CGST Rules notification no 3/2017-Central Tax dt 19.06.2017 amended by a later instrument |
Unsettled questions
The words of section 12 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.
- the provision leaves nothing to a firm position
See also
- Section 31 of the CGST Act, 2017: tax invoice
- Section 9 of the CGST Act, 2017: levy and collection
- Section 39 of the CGST Act, 2017: furnishing of returns
- Section 13 of the CGST Act, 2017: time of Supply of Services
References
- Central Board of Indirect Taxes and Customs. "Section 12. Time of Supply of Goods". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 2. Retrieved 17 September 2026.
- The Central Goods and Services Tax (Amendment) Act, 2018. Cited in CBIC footnote 1.
- The Finance (No. 7 of 2025) Act, 2025. Cited in CBIC footnote 2.
External links
- CGST Act, 2017, Section 12 on the CBIC tax information portal