This discussion clarifies the treatment of Reverse Charge Mechanism (RCM) entries concerning GST input tax credit. It confirms that RCM liability cannot be adjusted against input GST and must be paid separately in cash. Therefore, direct set-off of RCM payment against input GST is not permissible.
14 April 2022
One company has RCM liability, the liability requires to be set off to GST Input. RCM payment not required, as there is input GST .How to pass entries -