Input for RCM payment

[KARAN VERMA]

Sir

My question is if I have paid RCM on ocean freight belong to 2017-18 in January, 2020 GSTR-3B.

Whether I am eligible to claim input tax credit for the same.

AI Summary

Eligibility to Claim Input Tax Credit on Ocean Freight RCM: Section 16(4) CGST Act and Court Rulings Explained A user inquired about the eligibility to claim input tax credit on Reverse Charge Mechanism (RCM) paid on ocean freight for 2017-18 in January 2020. One response clarified that input tax credit can be claimed since the proviso of Section 16(4) of the CGST Act does not apply to IGST paid under RCM. Another response referenced a Gujarat High Court judgment declaring the tax on ocean freight unconstitutional, which could impact similar cases unless appealed by the government. A third response highlighted the issue of double taxation and how the court's decision benefits taxpayers, though its applicability may vary across different states.