Vishakha Mahajan (CA in Practice ) (84 Points)
11 July 2017Please Clarify: When will the credit of GST paid under reverse charge be available? (if it is eligible for credit) In Same month or next month?Will it result in working capital blockage?
Vishakha Mahajan
(CA in Practice )
(84 Points)
Replied 11 July 2017
But there is a notion that we will upload our invoices in GSTR-1 as outward supply by 10th of each month.
and then it should be autopopulated as input tax credit in the same return.Thus not resulting in blockage of working capital.
When will we exactly get credit for payment in RCM?
naveen
(CS)
(214 Points)
Replied 11 July 2017
Dear Vishakha,
it is batter to pay reverse charge in the same month to avail input credit in the next payment.
For Example-: For July Month RCM, pay it by 31st July to avail input credit of July month GST.
Means RCM Credit can be availed only next month of the payment month.
RAMESH D MODI
(Proprietor)
(4869 Points)
Replied 11 July 2017
naveen
(CS)
(214 Points)
Replied 12 July 2017
If you've paid RCM in advance in the same month then first you may claim ITC. Yes, if you're availing ITC against RCM paid then must mention in the GSTR-3 (i.e. monthly return).
For Ex.-: you purchased some service from non-taxable teritorry in the month of july (for instance USD 10000 @ 66 = INR 660000) and you paid RCM suppose @ 5% IGST on 31st july. Now you can claim the RCM in the next month of which GST is payable of July month. Suppose other GST Payable is Rs. 90000 but you have to pay only Rs. 57000(90000-33000RCM)
Now first file GSTR-1 for outward services of which GST is payable to Rs. 90000/- on or before 10th of Aug'2017.
Then then Check GSTR-2 if there is any mismatch in ITC - this is for purchase of services on or before 15th of Aug'2017.
Now file GSTR-3 on or before 20th of Aug'2017 where you can claim RCM which you paid on 31st July
2017.
Suppose in GSTR-1 total GST payable was Rs. 90000/-
Now in GSTR - 2 Total GST ITC (without RCM) Rs. 15000/-
in GSTR-3 GST ag. output Service Rs. 90000/-
in GSTR-3 Less-: Other Input Tax Credit Rs. 15000/-
in GSTR-3 Less-: RCM Paid Rs. 33000/-
in GSTR-3 Less:- Other GST Paid Rs. 42000/-
now Closing Balance/Carry Forward Rs. 0.00
CA Jayaram
(Chartered Accountant)
(49 Points)
Replied 21 August 2017
You are right.. we can claim in same month.. Ref: Tweet by 'askGST'
Priyanka Chaudhary
(Self employed)
(2 Points)
Replied 29 November 2017
Hi,
I have a query.
In the month of July my sale was 75.971 and tax payable was 10367. My purchase was 33206 because of which ITC was available as (5093(igst)+442+442) but during filing of GST 3B I mentioned my ITC available as reverse charge because of which instead of getting input tax credit of 5977 I paid excess 5977 and also didn't take the input tax credit which means i paid 11954 extra. I assumed it would come automatically by reflecting in my credit ledger after filing gst1 and gst2 of July 2017 but it didn't happen.
My question is how can I claim this extra amount paid.
Kindly advise.
Regards,
Priyanka
CAclubindia
