RCM Payment can we adjust in credit and cash ledger ITC

This query is : Resolved 
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This discussion clarifies whether RCM (Reverse Charge Mechanism) payments can be adjusted using input tax credit (ITC) available in either the credit ledger or the cash ledger. The consensus is that RCM payments can only be made from the cash ledger. This means you cannot offset RCM liabilities against your available ITC in the credit ledger.

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(Querist)
18 January 2022 Sir/Mam,

RCM payment with monthly return 3B Can adjust in ITC available in Credit ledger or cash ledger we have any option regarding this.

if possible, please kindly explain.

Thanking you,


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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
18 January 2022 Only cash ledger allowed for RCM payment.
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ARCHANA

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ARCHANA (Querist)
19 January 2022 Thank you Sir for quick reply
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
20 January 2022 You are welcome.......
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