Commercial Rent under RCM - Inward supply of service by URD to RD liable to RCM

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Partner
89 Points Joined December 2013

When we raised liability in 3B of JAN  25 in table 3.1 (d )  Inward supplies (liable to reverse charge) and claimed RCM in table 4 (3) Inward supplies liable to reverse charge (other than 1 & 2 above), the table  4  beomes red  signifying excess claim . any remedy or can ignore it.

 

 

 
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On 21 March 2025 at 02:28 Report
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Master in Accounts & high court Advocate
9004 Points Joined December 2011

When you've claimed RCM (Reverse Charge Mechanism) in Table 4(3) of GSTR-3B, and the table turns red, indicating an excess claim, consider the following: Understanding the Issue: - *RCM Claim*: You've correctly claimed RCM in Table 4(3) for inward supplies liable to reverse charge. - *Excess Claim*: The system is flagging an excess claim, which might be due to a mismatch between the liability declared in Table 3.1(d) and the RCM claim in Table 4(3). Remedies: 1. *Verify Liability and Claim*: Double-check the liability declared in Table 3.1(d) and the RCM claim in Table 4(3) to ensure accuracy. 2. *Reconcile the Difference*: If there's a genuine difference, reconcile it by adjusting either the liability or the RCM claim. 3. *File GSTR-3B with Red Flag*: If you're confident about the correctness of your liability and RCM claim, you can proceed to file GSTR-3B despite the red flag. 4. *Keep Supporting Documents Ready*: Maintain supporting documents, such as invoices and contracts, to justify your RCM claim in case of any future scrutiny. Ignoring the Red Flag: While you can file GSTR-3B with the red flag, it's essential to address the underlying issue to avoid potential consequences: - *Interest and Penalties*: If the excess claim is deemed incorrect, you might be liable for interest and penalties. - *Scrutiny and Audit*: The red flag might attract scrutiny or audit, which could lead to additional compliance burdens. Consult a tax professional or chartered accountant to ensure you're meeting the GST compliance requirements and to resolve the excess claim issue.

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On 21 March 2025 at 12:26


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