TaxTMI 
TaxTMI 
Dear Sir,
Can we adjust the Revers charge input tax credit of previous months for Revers charge payment to current month
Thanks & Regards,
Kiran Kumar
Input Tax Credit utilization - Reg
18 Nov 2017 
8 Replies 
1835 Views Asked by
Reverse charge credit cannot discharge reverse charges; liability must be paid in cash and credit used for outward tax.
Reverse charge liabilities under GST must be paid in cash and the electronic input tax credit ledger cannot be used to discharge reverse charge tax; tax paid under reverse charge may be utilised to pay tax on outward supplies. ITC eligibility and restrictions are governed by Sections 16-21 of CGST and ITC, where available, may be availed in the month of filing GSTR-3B. Transitional provision: motor vehicles purchased before GST commencement on which no prior indirect tax credit was claimed attract a specified concessional central tax rate on subsequent supplies. (AI Summary)
Reverse charge liabilities under GST must be paid in cash and the electronic input tax credit ledger cannot be used to discharge reverse charge tax; tax paid under reverse charge may be utilised to pay tax on outward supplies. ITC eligibility and restrictions are governed by Sections 16-21 of CGST and ITC, where available, may be availed in the month of filing GSTR-3B. Transitional provision: motor vehicles purchased before GST commencement on which no prior indirect tax credit was claimed attract a specified concessional central tax rate on subsequent supplies. (AI Summary)