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I am facing a certain problem while taking RCM input credit in Eligible ITC table of GSTR-3B return . Whenever we supply goods to our client we take the services of a transporter for despatching the consignment . But the transporter is unregistered. While filing the GSTR-3B return for any particular month we always pay the RCM liability also, figures of RCM liability are seperately shown in Table 3 of the reurn. But in the same month when we mention these RCM figures in the given field under Table 4 ie Eligible ITC table , then the table is highlighted automatically in red indicating mismatch/deviation. My question is : shall I not claim ITC on this RCM ? As I have already mentioned, every month while generating challan and paying GST liability at the moment of return filing , the RCM liability is also considered.
This same issue is happening with me also. I have declared my RCM liability in 3 and as soon as I entered the amount ITC column in 4 it is bursted with red. I haven’t filed the return because I don’t want to file return with error
Thanks for your reply . The due date for monthly return filing of GSTR-3B is approaching soon and I do not know whether I should claim the RCM ITC or forego it . If I dont claim it then we will stand to lose since I believe taking Transport service supply from a transporter is eligible for claiming ITC . And if i claim it – the table glows in red and who knows – there may be a notice from the GST deptt.
You can claim the ITC.. and you can ignore the red highlighted indication unless otherwise the said RCM is paid.
Ok thanks. So essentially you mean to say that I can claim the RCM input in the same month …. since I am seperately showing the RCM in Table 3 and also my GST liability payment includes this RCM figure as well , is my understanding correct ?
As we know, the tax payable w.r.t. to supply of goods and services on which reverse charge is applicable u/s 9(3), 9(4), 5(3), 5(4) has to be declared in Table 3.1(d) of the GSTR-3B return. The registered taxpayer can avail ITC to the extent of the RCM tax liability paid, by declaring such ITC in Table 4(A) "ITC Available" at Serial/Row No #3 "Inward Supplies Liable to Reverse Charge."
In my opinion, whereas the declaration and offsetting of such tax liability should be done in the current tax period's GSTR-3B, the Input Tax Credit should be availed in the subsequent tax period, and not in the same tax period in which such tax liability is being declared and paid.Otherwise, the taxpayer will not have to pay a single penny on reverse charge basis to the government.
Assuming you have purchased inputs on which the input tax is IGST Rs.10000/- As a recipient, you are required to discharge this tax liability in order to avail the ITC benefit. If you are to declare Rs.10000/- in Table 3.1(d) and claim ITC of an identical amount in Table 4A(3), in the same month's GSTR-3B, are you discharging any tax liability? No.
As to the table being highlighted in Red, any changes to auto-populated (system generated) figures, renders that cell or table red, and it can be ignored.
Cheers!
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