ITC on RCM

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This query is : Resolved

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This discussion clarifies a common query regarding the Input Tax Credit (ITC) on Reverse Charge Mechanism (RCM) for freight bills. The user paid RCM on a freight bill and availed ITC in a subsequent month. When reconciling GSTR-2A, the freight provider's GSTR-1 showed the amount, leading to confusion. The advice given is that since ITC has already been claimed correctly, it should not be claimed again, and the transporter's filing of their GSTR-1 in this scenario is noted as incorrect.

DINESH

DINESH (Querist)

08 February 2020 Any one pls clarify my doubt!

We have freight bill from ABC Transport for Rs.10,000/-
And paid RCM against thils bill in Jan'19 Rs.500/- (5% on Rs.10,000/-)
Re-Credite availed In Feb'19
(I mean RCM paid in previous month & ITC availed against previous month RCM paid)

Now we are reconcile the GSTR-2A for Jan'19.
As per my downloaded GSTR-2A, ABC Transport filed their GSTR-1. So, Rs.500/- showing.
In this case,

May I take ITC in this current year ?

RAJA P M

RAJA P M (Expert)

08 February 2020 Already You availed the ITC..

CA Anita Bhadra

CA Anita Bhadra (Expert)

08 February 2020 It is not correct on part to your transporter to show in his GSTR 1 as you had paid GST on it . Since you have already claimed ITC , do not claim it again .

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