Whether GST paid after 2 years in arrears under RCM with interest can be availed and utilised against current output?
10 Replies
Eswar Reddy S
(CFO- at NHTF)
(58270 Points)
Replied 01 September 2022
Since it is form part of electronic cash ledger, ITC can be availed
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 01 September 2022
Yes you can as ITC available on RCM on payment basis
Kishor Lulla
(993 Points)
Replied 03 September 2022
I differ. for rcm also, time bound claim is required.
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 03 September 2022
But if someone pay RCM of 17-18 now then how he get input
Eswar Reddy S
(CFO- at NHTF)
(58270 Points)
Replied 03 September 2022
Cash will be paid for RCM and not the credit adjustment
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 03 September 2022
I know it but after paying it you need to claim ITC back. I am asking the query from Kishor Lulla. Let him reply , don't put your fingers I'd you don't know reply
Rajendra Prasad
(Employee Private)
(1867 Points)
Replied 03 September 2022
No ITC can be availed if any payments under RCM made after filing Annual Return. Section 16(4) will apply here.
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 03 September 2022
Ok thanks for informat
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 08 September 2022
No you cannot claim ITC .
Legal Comment :
Tax paid Under Reverse charge available as input Tax :
As per the definition of Input Tax , u/s 2(62) it includes the taxpayble under provision of 9(3)(4).
& As per Section 16(4) it's time limit is prescribed to claim ITC .
Note : It was in press released in regard to reporting RCM entries in GSTR9 in FY being deposited in cash .
Why RCM is paid In Cash :
As per the definition of Output Tax Under section 2(82) excludes taxpayable on Reverse Charge . Since RCM is not considered as part of Output Tax so input tax cannot be utilized for payment tax under reverse charge , so need to be pay in cash
Legal Comment :
Tax paid Under Reverse charge available as input Tax :
As per the definition of Input Tax , u/s 2(62) it includes the taxpayble under provision of 9(3)(4).
& As per Section 16(4) it's time limit is prescribed to claim ITC .
Note : It was in press released in regard to reporting RCM entries in GSTR9 in FY being deposited in cash .
Why RCM is paid In Cash :
As per the definition of Output Tax Under section 2(82) excludes taxpayable on Reverse Charge . Since RCM is not considered as part of Output Tax so input tax cannot be utilized for payment tax under reverse charge , so need to be pay in cash
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