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RCM OF 18-19 PAID IN FY 19-20

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Shanmathi M

Articled Assistant

25 Points Posted on 13 February 2020

Hi,

One of our client is liable to pay gst on rcm for the remuneration paid to directors for FY 18-19. But they have failed to pay in FY 18-19 hence now in Feb 2020 GSTR 3B return we are going to pay Tax on RCM. Can we claim the same as ITC in March 2020 GSTR 3B return?

Replies (2)

Quick Summary

This discussion addresses whether Input Tax Credit (ITC) can be claimed for Reverse Charge Mechanism (RCM) GST liabilities pertaining to FY 18-19, but paid in FY 19-20. The consensus is that ITC cannot be claimed in this scenario because the relevant time period for claiming ITC has passed. Therefore, the GST paid on RCM for director remuneration for FY 18-19, when paid in February 2020, cannot be offset by ITC in the March 2020 GSTR 3B.