Gst paid and credit claimed under reverse charge..

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2018 M/s A has received some services from M/s B and paid GST under reverse charge and also claimed ITC on it from July to October 2017. Invoices had not contained GST. For the month of Nov and Dec 17 no GST is paid by M/s A also as reverse charge postponed.
However M/s B is registered supplier from July 2017.Now M/s B wants to pay GST from July 2017 till to date with interest.
(1) How both the parties will correct the accounting entries in their books??
(2) Is it required to pay GST by M/s B, as GST is already paid by M/s A under reverse charge??
(3) And if M/s B gives the credit note to M/s A from the period July to Dec 17 and reissued new bill with GST, how M/s A will reverse the entries in books which are done for RCM Liab and RCM credit and how M/s A will report these reversal in GSTRs??
(4) Is there any way to settle these transactions in both parties books??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 January 2018 1 B has to pay GST and send revised invoice to A. A has to account based on revised invoice and claim ITC. RCM payment consider it as GST advance payment.
2 Yes it is required for B to pay GST.
3 correct in gstr 3b to be filed.
4 No other way.

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2018 Thank you so much sir. But in this case for GST paid under RCM there is one more correspondence that we have claimed ITC also. So is it needed to report such transaction and their reversal in GSTR of following period as we report it as URD purchase. And can we liable for intt as wrong ITC claimed.??
And when supplier will issue new bill and will give credit note for the previous bills, will we show the credit note as negative balance under RCM Liab and RCM ITC in GSTR 3B and GSTR 1 of the following month???

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 January 2018 It's not wrong ITC claim you paid GST and claim ITC.
Show credit note under urd purchase.