ITC for the RCM amount paid

I am not able to avail ITC for the RCM amount paid for the month of December 2020. During the return filing, when i claim the ITC its showing as red. Please advise.
Replies (3)
Quick Summary
If you're encountering issues claiming Input Tax Credit (ITC) for Reverse Charge Mechanism (RCM) payments, it's often due to the self-invoice not appearing correctly in GSTR 2B. Ensure you've prepared a self-invoice as per CGST Act 2017, section 31(3)(f). If the RCM payment is made and tax is paid, you can generally ignore the red indicator in your return filing, as adverse consequences are unlikely.

1) For  RCM  you have  to prepare  Self  Invoice as per section 31(3) (f)  of the CGST  act  2017  . 

2) Same Invoice should  reflect  in GSTR 2B   to Claim  ITC . 

    Red  because  of   RCM  is not  reflected  in GSTR 2B   , Just  Check  GSTR 2B . 

In case of rcm pay and take ITC. Ignore the red box. No adverse consequences since you are paying the tax

you have to enter amount and it get RED >> save >> file the return (because ITC claim in the name of RCM is not reflected in GSTR_2A 

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