what is the reason for taking RCM input next month??
Replies (3)
Quick Summary
This discussion clarifies why input tax credit for Reverse Charge Mechanism (RCM) is typically claimed in the following month. Key reasons include the need to issue a self-invoice, file it in GSTR1, and have the tax reflected in your GSTR 2A/2B. Additionally, the actual payment of RCM tax to the government and the vendor's own invoicing and return filing also contribute to this timing. This applies when you receive goods or services subject to RCM.
You have to prepare self Invoice in case of RCM and file GSTR1 , same will be reflected. in 2A/2B in the next month , also payment of tax in Govt account on rcm , these are reasons for taking RCM credit in the next month.
It means Vendor also providing Invoice against his supplies and submitting his return in next month only. There also we have to take input in next only.?