Itc clim on reverse charge

[pawan singhal]

when registered person paid gst of reverse charge of july month in august. can he used rcm paid cash ledger against july month output gst liability . for example july month reverse charge tax paid on 10th aug of ₹ 10000 and in july month he has to paid 15000 on sales. now can he used this 10000 paid aginst 15000 tax liability .

[RAMESH PRAJAPATI]

Yes it is allowed. In GSTR- 3B you can declare and utilise for the month of July..

[Vamsi Krishna]

It may be allowed in GSTR 3B, however for Normal returns GSTR-2 & 3, ITC on RCM can be availed only on payment.

RCM on ITC will get auto populated from table 4A of GSTR-2 and once it is populated, you have to discharge the liability through cash ledger and ater making such payment, it will get added to your Input in GSTR-3.

If you have to avail RCM in the same month, you have to discharge your RCM cash liability in the same month of your exp incurred.

[KASTURI SETHI]

In all services or goods of RCM, GST is to be paid in cash first and then ITC can be taken on the strength of challan. Otherwise no eligibility. First be eligible thereafter to think about the month in which ITC is to be taken. Final eligibility is with acceptance of GSTR-3. The GST system will decide whether you have taken ITC in any month correctly or not.

AI Summary

Input tax credit on reverse charge: ITC available only after payment and cash ledger discharge and return recognition.
Input Tax Credit on reverse charge is claimable only after the reverse-charge tax liability is paid from the cash ledger and supported by payment evidence; GSTR-3B permits declaration and utilisation in the relevant month provided payment has been made and the GST return acceptance reflects the credit.