RCM of FY 2017-18
This query is : Resolved
31 October 2022
Dear Forum
RCM liability arose in FY 2017-18. Self invoice generated in FY 2020-21. Interest paid for delay. RCM liability paid in FY 2020-21 and ITC claimed in same year.
Is this permissible in gst law. ?
Regards
RCM liability arose in FY 2017-18. Self invoice generated in FY 2020-21. Interest paid for delay. RCM liability paid in FY 2020-21 and ITC claimed in same year.
Is this permissible in gst law. ?
Regards
31 October 2022
Not permissible..
..
..
01 November 2022
Sir
May I kindly ask what is the reason.
Regards
May I kindly ask what is the reason.
Regards
01 November 2022
Time limit to claim ITC over.
01 November 2022
Thanks Sir. Sorry I am continuing with the topic.
According to some school of thought, there is no time limit to raise self-invoice under section 31(3)(f) of the CGST Act.
Also your kind attention is invited to clause (g) of ‘Press Release’ from CBIC dated 3rd July 2019 relating to Clarification regarding Annual Returns and Reconciliation Statement which states :
"Reverse charge in respect of Financial Year 2017-18 paid during Financial Year 2018- 19: Many taxpayers have requested for clarification on the appropriate column or table in which tax which was to be paid on reverse charge basis for the FY 2017-18 but was paid during FY 2018-19. It may be noted that since the payment was made during FY 2018-19, the input tax credit on such payment of tax would have been availed in FY 2018-19 only. Therefore, such details will not be declared in the annual return for the FY 2017-18 and will be declared in the annual return for FY 2018-19. If there are any variations in the calculation of turnover on account of this adjustment, the same may be reported with reasons in the reconciliation statement (FORM GSTR-9C)."
It may be inferred from above that payment for RCM arising in FY 2017-18 can be made after 2017-2018, say in 2018-19, and will be entitled to ITC in FY 2018-19. It corroborates the fact that payment can be made at a later period with interest and then availment is permissible in gst law.
According to some school of thought, there is no time limit to raise self-invoice under section 31(3)(f) of the CGST Act.
Also your kind attention is invited to clause (g) of ‘Press Release’ from CBIC dated 3rd July 2019 relating to Clarification regarding Annual Returns and Reconciliation Statement which states :
"Reverse charge in respect of Financial Year 2017-18 paid during Financial Year 2018- 19: Many taxpayers have requested for clarification on the appropriate column or table in which tax which was to be paid on reverse charge basis for the FY 2017-18 but was paid during FY 2018-19. It may be noted that since the payment was made during FY 2018-19, the input tax credit on such payment of tax would have been availed in FY 2018-19 only. Therefore, such details will not be declared in the annual return for the FY 2017-18 and will be declared in the annual return for FY 2018-19. If there are any variations in the calculation of turnover on account of this adjustment, the same may be reported with reasons in the reconciliation statement (FORM GSTR-9C)."
It may be inferred from above that payment for RCM arising in FY 2017-18 can be made after 2017-2018, say in 2018-19, and will be entitled to ITC in FY 2018-19. It corroborates the fact that payment can be made at a later period with interest and then availment is permissible in gst law.
01 November 2022
In my opinion delayed payment of RCM with interest would not affect eligibility of availing input on it.
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