Statutory GST Rules & Law: Place of Supply, Time of Supply & RCM

जीएसटी कानूनी नियम एवं प्रावधान

Comprehensive guide to statutory GST laws under the CGST, SGST, and IGST Acts: Place of Supply rules, Time of Supply provisions under Section 12 & 13, Valuation rules under Section 15, and Reverse Charge Mechanism under Section 9(3) & 9(4).

Written by: Author Profile

Direct Tax & CA Review Panel

Chartered Accountancy Review Panel • Senior Direct Tax Review Desk

Reviewed & Fact-Checked by: Technical Review Panel

Tax Law & Dispute Review Desk

Tax Litigation & Legal Review Panel • Tax Appeal & Procedure Review Desk

Published: 1st April 2026•Last Updated: 15th August 2026•Last Reviewed: 15th August 2026

Key Statutory Highlights (FY 2026-27)

Place of Supply determines whether a supply is Intra-State (CGST+SGST) or Inter-State (IGST).

Time of Supply mandates that liability arises at the date of invoice issuance or date of payment receipt, whichever is earlier.

Section 15 Transaction Value is the base for GST levy if the price is the sole consideration and parties are unrelated.

Reverse Charge Mechanism (RCM) requires the recipient of specified services (GTA, legal fees by advocates, director services) to pay tax directly to the government.

Who is Eligible & When Does it Apply?

Applicability #1

All businesses engaged in supply of goods or services across India.

Step-by-Step Procedure & Compliance Roadmap

Determine Place of Supply

Identify location of supplier vs location of delivery / service recipient.

Determine Tax Type

Charge CGST+SGST if supplier and recipient are in same state; charge IGST if different states.

Check RCM Applicability

Identify if the service falls under Section 9(3) notification requiring recipient tax discharge.

Mandatory Documents Checklist

Tax Invoices, Delivery Challans, Transport Bilti / LR, Contracts

Common Mistakes & Compliance Risks to Avoid

•Charging CGST/SGST on inter-state billing.

•Claiming ITC on RCM payments before depositing cash liability in the electronic cash ledger.

Frequently Asked Questions

Can RCM tax liability be paid using Input Tax Credit?

No. RCM tax liability must be paid 100% in cash through the electronic cash ledger. You can then claim ITC for this cash payment in the same month's GSTR-3B.

Interactive Tax Calculators

GST Calculator

Related Tax Knowledge

Input Tax Credit Rules

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🛡️ Educational Disclaimer: FinSetu India is an independent educational guidance and calculation platform. Content is published for general citizen awareness based on applicable laws as of FY 2026-27. We do not provide personalized legal/tax advice or file returns directly. Verify current applicable rules on official portals or consult a qualified Chartered Accountant / Tax Lawyer.