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 .

AI Summary

Guidance on Using Reverse Charge Mechanism for GST: Pay in Cash First for ITC, Subject to GSTR-3 Validation. A registered person inquired about utilizing the reverse charge mechanism (RCM) paid in August for July's GST liability. Three respondents clarified the process. The first confirmed that it is allowed in GSTR-3B for July. The second added that while GSTR-3B permits it, for GSTR-2 and GSTR-3, ITC on RCM is only available upon payment, and the liability must be discharged via the cash ledger. The third emphasized that GST under RCM must be paid in cash first to claim ITC, which is contingent on GSTR-3 acceptance and system validation.