Reverse charge input tax credit follows the financial year of the recipient issued invoice; tax, interest and penalties may apply. Where a registered recipient must pay tax under reverse charge for supplies from an unregistered supplier, the recipient must issue the invoice and pay tax in cash; input tax credit is claimable only on the basis of that invoice and the relevant financial year for the timing limit to claim ITC is the financial year in which the recipient issues the invoice. Delayed issuance after time of supply attracts interest on late tax payment and potential penal consequences, and ITC remains subject to the general conditions and restrictions under the law.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Reverse charge input tax credit follows the financial year of the recipient issued invoice; tax, interest and penalties may apply.
Where a registered recipient must pay tax under reverse charge for supplies from an unregistered supplier, the recipient must issue the invoice and pay tax in cash; input tax credit is claimable only on the basis of that invoice and the relevant financial year for the timing limit to claim ITC is the financial year in which the recipient issues the invoice. Delayed issuance after time of supply attracts interest on late tax payment and potential penal consequences, and ITC remains subject to the general conditions and restrictions under the law.
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