Eligibility of ITC

[Kaustubh Karandikar]

In case of Services provided by Govt., the licence fee is paid to State Govt. in February’19 but GST under reverse charge paid July’19 with interest. Will this be treated in financial year 18 – 19 and ITC cannot be claimed on it or since the GST was paid in July’19, it will be treated as transaction in 19 – 20 and ITC can be claimed on it in this month?

AI Summary

Debate on Input Tax Credit Eligibility Under GST: Financial Year 2019-20 or 2018-19 for License Fee Payment? A discussion on the eligibility of Input Tax Credit (ITC) under the Goods and Services Tax (GST) regime focused on a situation where a license fee was paid to the State Government in February 2019, but GST under reverse charge was paid in July 2019. One participant argued that the transaction should be treated in the financial year 2019-20, allowing for ITC to be claimed. Another participant emphasized that the time of supply is the date of payment, supporting the 2019-20 treatment. A third participant highlighted the requirement to issue a self-invoice upon receipt of services, suggesting the transaction pertains to the financial year 2018-19.