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RCM ITC and interest on late payment of RCM

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Shivangi Aggarwal

15 Points Posted on 15 February 2020

if for the year 17-18 reverse charge on freight is not paid yet ,for eg Rs 10,000 .
Now in GSTR 9 Annual return if we pay that amount now that is in FY 19-20 during filing annual return ,can we take itc on RCM - 10000 (in our example) now in 19-20.

do we have to pay interest on that 10000 or not?

Replies (5)

Quick Summary

This discussion clarifies the rules around Reverse Charge Mechanism (RCM) input tax credit (ITC) for the 2017-18 financial year. If RCM dues for that period remain unpaid and are settled in FY 2019-20 during the GSTR 9 filing, you generally cannot claim the ITC for that amount. However, interest at 18% per annum is applicable on the unpaid RCM amount from the original due date until payment.

RAJA P M

"Do the Right Thing...!!!"

128162 Points Posted on 15 February 2020

Can we take itc on RCM - 10000 (in our example) now in 19-20...?

- No. ITC not available as time limit (& due date) expired...

do we have to pay interest on that 10000 or not?

- Yes... Interest applicable only the payable amount.