23 August 2017
Sir, one of my clients has paid for job work services, attracting CGST & SGST at Rs.2500 each, as reverse charge. While filing GSTR 3B, I entered those figures in "3.1 Details of Outward Supplies and inward supplies liable to reverse charge" table under the heading "(d) Inward supplies (liable to reverse charge)". Now, in the "4. Eligible ITC" table, there is a heading "(3) Inward supplies liable to reverse charge (other than 1 & 2 above)". Should I set off that reverse charge liability under this heading, or do I need to pay cash worth Rs.5000?. Because I heard that reverse charge should be set off only through cash payment. Kindly advise me on this.
23 August 2017
Thank u for ur reply Sir, but what should we fill in the option "Inward supplies liable to reverse charge (other than 1 & 2 above)"? in the eligible ITC column? Can't we enter that amount of Rs.2500 in that column and set off?
23 August 2017
Amount paid towards reverse charge will be available for credit in your electronic credit ledger and will be available for set off for your output tax liability on supply of goods/service. so, you have to show in both places i.e. liability on reverse charge and eligible ITC on reverse charge. but same can not be setoff against RCM liability.
CAclubindia
