Input on RCM Paid in March 2020 related to FY 2018-19

[VARDHMAN DOOGAR]

In recent AAR issued by Rajasthan, GST on director remuneration by whatever name called has to be discharged under RCM of GST Law.

I know there are some legal and technical glitches and disputed whether liability has to be discharged or not keeping in the mind of various judgments and circular issued under the previous Tax Regime.

My question is if RCM is paid in the GSTR-3B of March 2020 or GSTR9/9C of FY 2019-20 related to remuneration paid to a director in FY 2018-19, whether input can be claimed or not?

AI Summary

Debate on Input Tax Credit for Director Remuneration Paid in FY 2018-19 and RCM Payment in March 2020 A discussion on a forum revolves around the applicability of Input Tax Credit (ITC) on director remuneration paid in FY 2018-19, and whether it can be claimed when the Reverse Charge Mechanism (RCM) payment is made in March 2020. Various participants debate the time limits for claiming ITC under the GST law, referencing sections of the CGST Act, including Section 16(4) and Section 13(3). Some argue that ITC can be claimed if the self-invoice is issued timely, while others highlight the lapse of the time period for claiming ITC, making it inadmissible. Participants also discuss the implications of press releases and provisions under different sections for claiming ITC.