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

Time of supply under reverse charge governs ITC entitlement; self invoice and statutory September cut off determine admissibility.
Claiming input tax credit for reverse charge tax paid later for earlier director remuneration depends on RCM time of supply-tied to payment or the sixty day rule-and the requirement to issue a self invoice. However, a statutory cut off prohibits availing ITC after the due date of the September return following the relevant financial year or after filing the annual return, so ITC may be barred if that deadline for the earlier year has passed despite payment and self invoicing in the current period.