New RCM Time of Supply Rules Effective from November 1, 2024: Know About Changes and Compliance Requirements

The new Reverse Charge Mechanism (RCM) time of supply rules, effective from November 1, 2024, introduce significant changes and compliance requirements for businesses. Under the new rules, the time of supply for goods and services under RCM will be the date of payment or the date immediately following 60 days from the invoice date, whichever is earlier. For associated enterprises, the time of supply will be the date of entry in the books of account or the date of payment, whichever is earlier. These changes aim to streamline the RCM process and ensure timely tax payments. Businesses are advised to review their RCM compliance procedures to align with the new rules.