REVERSE CHARGE MECHANISM

[Asked by Guest]

During GST Audit FOR 2017/18, addl. RCM liability of F.Y. 17/18 is determined and payable. If paid on 6.2.2020, when to claim the credit for such amount paid. ? Can such credit be used against GST liability for the month of Jan.2020?

Thanks and regards

AI Summary

Time of supply under reverse charge governs when input tax credit can be claimed upon payment and self-invoice.
Under RCM, time of supply for services is the earlier of payment date recorded or sixty days after the supplier's invoice; ITC for additional RCM liability requires issuance of a self-invoice/supplementary invoice and proof of payment. A supplementary invoice is treated as a tax invoice for returns and payment, and records must be retained. The document records two practitioner views-one recommending refund where ITC is time-barred, the other relying on the payment-based time-of-supply rule to claim ITC upon payment and self-invoicing.