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Can we claim RCM ITC paid on Gst audit of earlier years,

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This query is : Resolved

Venkateshwarlu Pulluri (Querist)

10 March 2026 Can we claim RCM ITC of earlier years, Paid on Gst Audit by Gst Department in subsequent month GSTR3B of this current year directly....

please inform me

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

11 March 2026 GST rules impose strict time limits for claiming ITC under Section 16 of the CGST Act. ITC must generally be claimed by the due date of filing GSTR-3B for September of the following financial year (or annual return, whichever is earlier), after which it becomes time-barred. For earlier years' RCM demands raised via audit (under Section 65), late payment—often via DRC-03—does not automatically entitle you to ITC in current GSTR-3B tables like 4A(2)/4A(3), as eligibility ties to the original invoice/self-invoice date and payment timing.

Post-audit demands require payment with interest and possibly penalty, typically through DRC-03. While payment creates a potential ITC basis (after cash payment of RCM tax), claiming it now risks rejection as time-barred, especially for years like 2017-18 or older. Self-invoicing should have occurred originally; retrospective claims in current GSTR-3B (e.g., Table 4A(5) for reclaims) are limited to recently reversed ITC, not audit recoveries.

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