Restriction u/s 16(4) of CGST Act applicable on services received under RCM also

[Tanmay Bhardwaj]

Dear Experts

I received legal services in February 2018 on which i was liable to discharge GST under RCM mechanism. However i made payment to such service in October 2018. My question is whether restriction u/s 16(4) of the CGST Act, 2017 would be applicable in this and accordingly, i would not be able to avail ITC of GST paid on such service?

Regards

Tanmay

AI Summary

Input Tax Credit cut-off applies to services under reverse charge, barring credit after the prescribed return deadline.
Restriction under Section 16(4) bars input tax credit after the earlier of the September return deadline following the financial year or the filing of the annual return, and this cut-off applies equally to supplies for which tax is discharged by the recipient under the reverse charge mechanism. If tax under reverse charge was paid after the date on which it was due, interest may be payable for the delayed payment, so the actual payment date under RCM is consequential.