GST ITC for Jul17 to march 18

[Madhavan iyengar]

Sirs

A company has not availed ITC of some invoices of services of the period July 17 to March 18,

by virtue of the order 02/2018 issued by CBIC dated 31/12/2018 can this ITC be availed now in Dec 2018

Can RCM Liability of IGST on import of services / local CGST/SGST which was not paid during period July 17 to march 18 be paid now and the ITC of RCM be availed in Dec 2018 after payment.

[SHARAD ANADA]

Yes, you can claim ITC. As per order, registered person can claim "Input Tax Credit" till 31.03.2019.

As per sec 2(63) Input tax includes IGST paid on import on goods and RCM paid U/s 9(3) and 9(4) under CGST Act 2017 and RCM paid U/s 5(3) and 5(4) under IGST Act 2017.

Make sure that you have possession of documents as required under rule 36 of CGST Rule 2017

[Madhavan iyengar]

sir

if you read the order it clearly specifies ITC availed during fy 17-18 for rcm we would have to raise a self invoice which will be raised now during oct 18 to march 19, if you see the language of section 16(4) it states in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18.

[Madhavan iyengar]

sethiji can you also share your valuable views on this issue of RCM credit :

RCM not paid on local and imported services during period of july 17 to march 18 ( invoices pertain to the said period) can the RCM be paid now in Dec 2018 and credit of the said ITC on RCM paid in Dec 2018 be taken in 3B return for December 2018 by virtue of the order 02/2018 issued by CBIC dated 31/12/2018

[Ganeshan Kalyani]

Sir, you have not paid RCM but would have raised a self invoice in FY 2017-18. If this is so, then ITC can be availed. Otherwise, if you raising a self invoice in current date then RCM is payable now and since self invoice is dated in current date ITC can be claimed considering invoice of FY 2018-19.

[Madhavan iyengar]

sir in the case of rcm the time of supply as per gst law sec 13(3)

(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earlier of the following dates, namely:––

(a) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or

(b) the date immediately following sixty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier:

Provided that where it is not possible to determine the time of supply under clause (a) or clause (b), the time of supply shall be the date of entry in the books of account of the recipient of supply

so as far as rcm of July 17 / aug 17/ sept 17 is concerned the time of supply has already taken place hence how we can pay the same in current year and take credit as these invoices are already accounted in fy 17-18 rcm was not paid ????

[Madhavan iyengar]

self invoice is required for rcm which is raised now, i.e. during 2018-19 since it pertain to the supplies during 2017-18, ITC of the same cannot be availed now, as the language of Section 16 (4) is very specific, i.e. "in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18

AI Summary

Input Tax Credit: transitional relief may allow past-period claims, but reverse-charge timing and invoice attribution can limit entitlement. Claiming past-period Input Tax Credit for services invoiced July 2017-March 2018 depends on the CBIC transitional direction permitting ITC subject to documentary compliance and on statutory constraints: RCM time-of-supply may have occurred in the earlier year and Section 16(4) limits entitlement to invoices made during that financial year, so a self-invoice raised later may attribute credit to a subsequent year.