TaxTMI 
TaxTMI 
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?
Eligibility of ITC
04 Mar 2020 
3 Replies 
1266 Views Asked by
Time of supply determines ITC claiming period; self-invoice timing and invoice-year capping decide eligibility under GST.
Eligibility to claim ITC for GST paid under reverse charge after the underlying payment turns on statutory markers: some commentators treat the transaction as occurring in the year when GST was paid and a self-invoice issued (permitted because no time limit on self-vouchers), others rely on time-of-supply principles tied to payment to allow later-year credit, while a restrictive view emphasises the obligation to issue self-invoices on receipt and the statutory capping that ties credit to the financial year to which the invoice pertains, thus treating the transaction as belonging to the earlier year. (AI Summary)
Eligibility to claim ITC for GST paid under reverse charge after the underlying payment turns on statutory markers: some commentators treat the transaction as occurring in the year when GST was paid and a self-invoice issued (permitted because no time limit on self-vouchers), others rely on time-of-supply principles tied to payment to allow later-year credit, while a restrictive view emphasises the obligation to issue self-invoices on receipt and the statutory capping that ties credit to the financial year to which the invoice pertains, thus treating the transaction as belonging to the earlier year. (AI Summary)