GST under reverse charge

[Kaustubh Karandikar]

GTA Services, Legal Services etc. received in the financial year 17 – 18 but GST under reverse charge paid on it in the financial year 19 – 20 with interest. Self-Invoice for the same also prepared for the same in 19 - 20 Can ITC be claimed on it now in the month of March’20?

[Rajagopalan Ranganathan]

Sir,
According to Section 18 (2) of CGST Act, 2017 "a registered person shall not be entitled to take input tax credit under sub-section (1) in respect of any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such supply

Since you have prepared the invoice in 19-20 (exact date of invoice is required) you can take the credit upto 20.10.2020 (last date for filing the return for September 2020).

[Amit Ruia]

In my view, self invoice only if the supplier of service is unregistered otherwise not. So if such service is supplied by registered supplier, still the Invoice date is date of invoice issued by supplier and reflected in GSTR-2A of recipient I think.

[KASTURI SETHI]

The basic document for availing ITC of tax paid under RCM on inward supplies from a registered supplier is a tax Invoice issued by the registered supplier.

In case of supplies from an unregistered supplier, ITC is available on the basis of the “self-invoice” raised by the registered recipient/buyer on self as required under Section 31(3)(f) of the CGST Act, 2017.

In both the situations the date of invoice is also crucial.

[KASTURI SETHI]

Under RCM, the date of invoice and date of payment in cash both are integrated for the purpose of availment of ITC and time limitation.

[Venkataprasad Pasupuleti]

The self invoice is the invoice u/s. 31 of CGST Act, 2017 & time limit u/s. 16(4) links with the date of invoice & not date of transaction. Hence, in your case, the time limit is 20.10.2020 for the self invoice raised in FY19-20.

[KASTURI SETHI]

Right advice by Sh.CAVenkataprasad Pasupuleti Ji.

[Kailash Garg]

If liability pay through DRC 3 then Not claim of ITR

[KASTURI SETHI]

DRC-03 is not a prescribed document for availing ITC under Rule 36 (1) of CGST Rules, 2017.

AI Summary

Input tax credit time limit: claimable when self-invoice issued within statutory period, subject to supplier invoice rules.
Claiming input tax credit on supplies taxed under reverse charge hinges on the invoice date and statutory time limitation. A self-invoice raised for supplies from an unregistered supplier can support ITC if its date falls within the allowable period; where the supplier is registered, the supplier's tax invoice controls. Invoice date and payment timing together determine the time bar, and DRC-03 is not a prescribed document for availing ITC under the relevant rule.