GST payable under RCM

2nd quation: you will get ITC only when you pay tax under reverse charge

GST @ 5% is required to be paid by the Recipient under Reverse Charge Mechanism (RCM) as per Section 9(3) of the CGST Act 2017 read with Notification No. 13/2017 - Central Tax ( Rate ), dated 28th June 2017, if you have received services from a GTA ( Goods Transport Agency ).

For paying GST under RCM basis, you need to prepare a "SELF INVOICE" as provided under Section 31(3) clause (f) of the CGST Act 2017 on the date of receipt of goods or services and also you need to issue a Payment Voucher to the Supplier acknowledging the payment. Accordingly you have to file GSTR-1 & GSTR-3B showing this RCM payment and then claim ITC.

Further as per Rule 36 sub rule (1) clause (b) of the CGST Rules 2017, the Self Invoice is the document which is required to claim ITC on GST paid under RCM basis.

EXTRACT OF RULE 36(1) clause (b) :

The input tax credit shall be availed by a registered person on the basis of "an invoice issued in accordance with the provisions of clause (f) of sub-section (3) of section 31, subject to the payment of tax."

Hope you understood Sir...

Regards,
Shivam RC.

Thank you for your valuable advise.