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Query regarding RCM

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aswinichari

Student CA IPC / IPCC

23 Points Posted on 19 April 2021

RCM on inward supplies is shown in GST 2B and same may be highlighted in GST3 B , we declare in 3B gate way, but i have query of claiming the ITC of RCM on same month or in subsequent file period???

Replies (4)

Quick Summary

This discussion clarifies the process of claiming Input Tax Credit (ITC) for inward supplies under the Reverse Charge Mechanism (RCM) in GST. While RCM liability is reflected in GSTR-2B, the key question is when to claim the ITC. It's generally accepted that ITC can be claimed in the same month the RCM liability is paid, even though a self-invoice isn't practically generated for GSTR-1. The discussion also addresses an erroneous system alert related to upward revision of RCM liability in GSTR-3B, advising taxpayers to continue declaring correct figures.

prasad Nilugal

3924 Points Posted on 19 April 2021

For RCM one has to prepare Self Invoice , who pay tax on reverse charge , same you have to file in GSTR1 and will be reflected in GSTR2A /2B ,after reflection you can claim credit .

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 19 April 2021

Agree with Prasad

CA ABHAY GUPTA

Practice

3235 Points Posted on 19 April 2021

Practically self invoice is not available it is theoretical only meaning by if you put your GSTN in your GSTR1 system doesn't accept it, thus practically we are claiming ITC in the month we pay RCM.

Ignore prompt on liability for inward supplies attracting reverse charge in Table-3.1 (d)” as said by CBIC
It is noticed that the system is giving alert when the taxpayer revises the auto-populated values upward by 10% in table 3.1(d) which pertains to inward supplies attracting reverse charge. This alert is erroneous. The technical team is working to resolve the same at the earliest.
Meanwhile, the taxpayers may kindly continue to declare their correct liability in Table-3.1(d) pertaining to liability on inward supplies attracting reverse charge and proceed to file GSTR-3B