9(3) RCM NOT SHOWN IN 3B RETURN & NOT PAID FOR APRIL 2019 BUT GST IS PAID UNDER FORWARD CHARGE

To rectify the issue of missed RCM (Reverse Charge Mechanism) liability for April 2019, you cannot revise the original GSTR-3B return. Since GSTR-3B filings cannot be amended, you must address the shortfall through subsequent filings or a voluntary payment.

Steps to Rectify the Missed RCM Liability

1. Calculate the Liability and Interest:

   • Calculate the exact tax amount that was liable under RCM for April 2019.

   • Calculate the interest at 18% per annum, applicable from the original due date of the April 2019 return until the actual date of payment.

2. Payment via Form DRC-03:

   • The most standard way to pay a missed liability for a past period is through Form DRC-03 on the GST portal.

   • Navigate to: Services > User Services > My Applications > Intimation of voluntary payment - DRC-03.

   • Select "Liability Mismatch - GSTR-1 to GSTR-3B" or "Audit/Inspection/Investigation/Others" as the cause of payment.

   • Select the relevant financial year (2019-20) and the specific tax period (April 2019).

   • Enter the tax, interest, and any applicable penalty amounts. You must pay this liability using your Electronic Cash Ledger only (ITC cannot be used to pay RCM liabilities).

3. Claiming Input Tax Credit (ITC):

   • Once you have paid the RCM liability in cash, you become eligible to claim the corresponding ITC.

   • You can report this in the GSTR-3B of the month in which the payment is made (or in a subsequent month).

   • The ITC should be claimed in Table 4(A)(3) (Inward supplies liable to reverse charge).

4. Regarding the Forward Charge Payment:

   • If you inadvertently paid GST under Forward Charge for a transaction that should have been under RCM, you may have "overpaid" tax in your regular outward supply liability.

   • While you can adjust overpaid tax in subsequent returns if it falls within the same financial year (subject to statutory time limits), since this pertains to 2019, you should consult with a tax professional regarding a refund application under Section 54 for "excess payment of tax," though time bars may apply.

Important Notes:

• Time Limits: Rectification of GSTR-3B via the return cycle is generally permitted until the 30th of November following the end of the financial year or the filing of the Annual Return, whichever is earlier. For FY 2019-20, this window has long since closed.

• Voluntary Payment: Using DRC-03 is the recommended "voluntary" method to rectify past omissions without receiving a formal notice from the department.

• Documentation: Maintain a detailed reconciliation statement of your books, the missed RCM, the interest calculation, and the DRC-03 acknowledgment to present if you are ever audited.

Summary: Since you cannot revise a past GSTR-3B return, you should pay the missed RCM liability along with 18% interest using Form DRC-03 on the GST portal. Once paid in cash, you can claim the eligible ITC in your current GSTR-3B return under Table 4(A)(3).