Australia grabbed the early advantage with a lead of 47 on Wednesday after Matthew Kuhnemann's five-wicket haul helped dismiss India for 109 on a dramatic first day of the third Test.

The tourists were 156-4 at stumps after Usman Khawaja hit a gritty 60 to drive his team's reply on a viciously turning pitch in Indore.

Khawaja stood out with his 21st Test half-century and a 96-run second-wicket stand with Marnus Labuschagne, who made 31.

Labuschagne, who tops the Test batsman rankings, won a reprieve on nought when Jadeja was adjudged to have overstepped the crease.

The left-handed Khawaja fell with an attempted sweep, caught at deep mid-wicket after putting Australia ahead of India's first-innings total.

Stand-in skipper Steve Smith looked good in his knock of 26 before being caught behind.

But it was Kuhnemann, a left-arm spinner, who made Australia's day after the hosts elected to bat first on a dry pitch, which turned from the start.

Australia, attempting to fight back after two bruising defeats in the four-match series, introduced spin in the sixth over.

It brought instant reward in a frenetic opening session on a spinning minefield with a low bounce, as Kuhnemann had captain Rohit Sharma stumped for 12.

Shubman Gill, recalled in place of the struggling KL Rahul, began to hit back with three fours but also fell to Kuhnemann, caught at slip by Smith for 21.