A Goods Transport Agency (GTA) is failing to file their GSTR 1, which means transactions aren't appearing in GSTR 2A. A GST auditor is denying the claim for Reverse Charge Mechanism (RCM) input tax credit (ITC) because it's not reflected in GSTR 2A, and is proposing to levy tax and interest. However, the department's view is incorrect; you are eligible to claim ITC on RCM paid, as Section 16 of the GST law does not require RCM ITC to be reflected in GSTR 2A for it to be claimable.
10 February 2023
GTA is not filing GSTR 1 hence transaction not reflecting in GSTR 2A. GST AUDIT is of the view that as it does not appear in 2A I am not entitled to claim RCM Input even if I have paid RCM LIABILITIES. So Audit is rejecting input and wish to impose tax and interest on it. Pl me How to submit my explanation.
14 February 2023
You are eligible to claim input tax credit on RCM paid by you. There is no condition prescribed under section 16 for claiming ITC on RCM only when it gets reflected in 2A.