Master in Accounts & high court Advocate
9610 Points
Joined December 2011
When you pay GST under the Reverse Charge Mechanism (RCM) for rent paid to an unregistered dealer, you are eligible to claim Input Tax Credit (ITC) on the tax paid. However, the timing of claiming ITC depends on when the tax is paid and when it appears in GSTR-2B. Since you have already included the GST payment in GSTR-3B for March, the ITC should ideally be claimed in the same month. However, the warning you are seeing—about ITC exceeding the amount in GSTR-2B—occurs because RCM transactions do not appear in GSTR-2B, as the tax is paid directly by the recipient rather than being reported by a supplier. You can ignore the warning and proceed with filing GSTR-3B for March, as ITC on RCM payments is allowed in the same month when the tax is paid. It will not appear in GSTR-2B for April, since GSTR-2B only reflects invoices uploaded by suppliers, and RCM transactions do not follow this process. For confirmation, you may refer to discussions on ITC for tax paid under RCM here. If you need further clarification, consulting a tax professional or referring to official GST guidelines would be advisable.