Input tax credit on gst paid in reverse charge

ITC / Input 8561 views 9 replies

Please Clarify: When will the credit of GST paid under reverse charge be available? (if it is eligible for credit) In Same month or next month?Will it result in working capital blockage?

Replies (9)
Yes it will need more W/C

But there is a notion that we will upload our invoices in GSTR-1 as outward supply by 10th of each month.

and then it should be autopopulated as input tax credit in the same return.Thus not resulting in blockage of working capital.

When will we exactly get credit for payment in RCM?

Dear Vishakha,

it is batter to pay reverse charge in the same month to avail input credit in the next payment.

 

For Example-: For July Month RCM, pay it by 31st July to avail input credit of July month GST.

Means RCM Credit can be availed only next month of the payment month.

totally agreed with u Navin.
But can the credit of rcm pay for July be taken in the return of july however paid in advance?
i am confused.

If you've paid RCM in advance in the same month then first you may claim ITC.  Yes, if you're availing ITC against RCM paid then must mention in the GSTR-3 (i.e. monthly return).

For Ex.-: you purchased some service from  non-taxable teritorry in the month of july (for instance USD 10000 @ 66 = INR 660000) and you paid RCM suppose @ 5% IGST on 31st july.  Now you can claim the RCM in the next month of which GST is payable of July month.  Suppose other GST Payable is Rs. 90000 but you have to pay only Rs. 57000(90000-33000RCM)

Now first file GSTR-1 for outward services of which GST is payable to Rs. 90000/- on or before 10th of  Aug'2017.

Then then Check GSTR-2 if there is any mismatch in ITC - this is for purchase of services on or before 15th of Aug'2017.

Now file GSTR-3 on or before 20th of Aug'2017 where you can claim RCM which you paid on 31st July

2017.

Suppose in GSTR-1  total GST payable was                     Rs. 90000/-

Now in GSTR - 2       Total GST ITC (without RCM)          Rs. 15000/-

 

in GSTR-3          GST ag. output Service                          Rs. 90000/-

in GSTR-3          Less-: Other Input Tax Credit                 Rs. 15000/-

in GSTR-3          Less-: RCM Paid                                    Rs.  33000/-                                                                              

in GSTR-3         Less:- Other GST Paid                            Rs. 42000/-

now Closing Balance/Carry Forward                                  Rs.     0.00

 

 

 

 

 

Thanks for clarifying

 

You are right.. we can claim in same month.. Ref: Tweet by 'askGST'

Can u share dat link pls

Hi,

I have a query.

In the month of July my sale was 75.971 and tax payable was 10367. My purchase was 33206 because of which ITC was available as (5093(igst)+442+442) but during filing of GST 3B I mentioned my ITC available as reverse charge because of which instead of getting input tax credit of 5977 I paid excess 5977 and also didn't take the input tax credit which means i paid 11954 extra. I assumed it would come automatically by reflecting in my credit ledger after filing gst1 and gst2 of July 2017 but it didn't happen.

My question is how can I claim this extra amount paid.

Kindly advise.

Regards,

Priyanka


CCI Pro

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