| Sep-14-2021

RCM for earlier periods

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  • CA VenkataramaniBayya Reddy D K
    Participant

    RCM paid for the FY 2017-2018 through DRC3 challen on Sep 2021. Can I claim input of this based on the paid date challen?.

    CA VenkataramaniCA Venkataramani
    Compliance Expert

    In my considered view, the input tax credit of GST remitted under reverse charge mechanism in September 2021 pertaining to the tax periods July 2017 to March 2018 is not eligible for the claim of input tax credit for following reasons:
    1. Input tax credit is eligible to be claimed on the basis of tax invoice or debit note. In case of GST payable under reverse charge mechanism, in terms of Section 31(3)(f) of the CGST / respective SGST Act, 2017, a registered person liable to pay GST under Section 9(3) or Section 9(4) shall issue an invoice on the date of receipt of goods and / or services;
    2. In terms of Section 16 of the CGST / respective SGST Act, 2017 read with Rule 36(b) of the CGST / respective SGST Rules, 2017, the invoice issued under Section 31(3)(f) of the CGST / respective SGST Act, 2017 is specified as the document based on which the input tax credit is eligible to be claimed;
    3. In terms of Section 16(4) of the CGST / respective SGST Act, 2017, it is specified that the registered person is not entitled to claim input tax credit in respect of any invoice or debit note for supply of goods and / or services after the due date of furnishing the return under Section 39 for the tax period September following the end of the financial year to which such invoice relates to. The proviso to Section 16(4) inserted vide Order No. 2/2018 – Central Tax dated 31.12.2018 provided that the input tax credit pertaining to the tax periods July 2017 to March 2018 is eligible to be claimed till the due date of furnishing the return for the tax period March 2019.

    Accordingly, in the instant case, in my considered view, you are not entitled to claim the input tax credit of GST paid under reverse charge mechanism for the tax period July 2017 to March 2018 by way of filing Form GST DRC – 03.

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