I have well known about RCM provisions u/s 9 & Categories of supplies which attract RCM but have doubts on RCM while calculating GST liabilities for GSTR 3B,
For Example, I have taken GTA Servies which have not opted 12% So RCM charge will apply to me. Such I have to show in Output Tax & take ITC, Is it Right?. I think it's right but how should I pay such tax if such shown as OUTPUT & ITC then ultimate liability will be zero if no sales are made.
Please clarify me, its very helpful me if you explain with accounting entries.
20 August 2020
You can take ITC on RCM only after payment and the payment gets adjusted only after filing the GSTR 3B, thus you can take ITC only in the subsequent month, so you need to show RCM liability in the current month and take RCM ITC in the next month return.
CAclubindia
