LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

GST RCM CREDIT

H.S.S.RAGHAVENDRAN (CORPORATE EMPLOYEE) (35 Points)

01 September 2022

Whether GST paid after 2 years in arrears under RCM with interest can be availed and utilised against current output?

Reply
Follow
Share

10 Replies

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 01 September 2022

Since it is form part of electronic cash ledger, ITC can be availed

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 01 September 2022

Yes you can as ITC available on RCM on payment basis

1 Like

Kishor Lulla (784 Points)
Replied 03 September 2022

I differ. for rcm also, time bound claim is required.

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 03 September 2022

But if someone pay RCM of 17-18 now then how he get input

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 03 September 2022

Cash will be paid for RCM and not the credit adjustment

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 03 September 2022

I know it but after paying it you need to claim ITC back. I am asking the query from Kishor Lulla. Let him reply , don't put your fingers I'd you don't know reply

Rajendra Prasad (Employee Private) (1824 Points)
Replied 03 September 2022

No ITC can be availed if any payments under RCM made after filing Annual Return. Section 16(4) will apply here.

Shankar Lal gst officer Roopga (12 Points)
Replied 03 September 2022

Section 16 will be applicable

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 03 September 2022

Ok thanks for informat

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 08 September 2022

No you cannot claim ITC .

Legal Comment :
Tax paid Under Reverse charge available as input Tax :
As per the definition of Input Tax , u/s 2(62) it includes the taxpayble under provision of 9(3)(4).
& As per Section 16(4) it's time limit is prescribed to claim ITC .

Note : It was in press released in regard to reporting RCM entries in GSTR9 in FY being deposited in cash .

Why RCM is paid In Cash :
As per the definition of Output Tax Under section 2(82) excludes taxpayable on Reverse Charge . Since RCM is not considered as part of Output Tax so input tax cannot be utilized for payment tax under reverse charge , so need to be pay in cash