2017-18 RCM on Freight paid in 2018-19

This discussion addresses the correct reporting of Goods and Services Tax (GST) Reverse Charge Mechanism (RCM) liabilities from the 2017-18 financial year that were actually paid in the 2018-19 financial year. According to a clarification from the Central Board of Indirect Taxes and Customs (CBIC), these amounts should not be reported in the 2017-18 annual return (GSTR 9). Instead, they must be declared in the annual return for the financial year in which they were paid, i.e., 2018-19.