DRC-03 ADJUSTMENT

[shivashankar mr]

Can we take input for FY 2020-21

for Non payment of RCM for URD Expenses paid through DRC-03 before annual return. for the FY 2019-20/

AI Summary

Eligibility for Input Tax Credit on RCM for FY 2020-21 Questioned; Section 16(4) of CGST Act Discussed A query was raised regarding the eligibility of taking input tax credit for the financial year 2020-21 for expenses paid through DRC-03 before filing the annual return for FY 2019-20, specifically concerning Reverse Charge Mechanism (RCM) for unregistered dealer (URD) expenses. Respondents highlighted that under Section 16(4) of the CGST Act, the credit relies on the date of the self-invoice. The proposed amendments in the Finance Act, 2020, regarding time limits for invoice issuance, are yet to be enforced. Additionally, it was noted that RCM on URD purchases has not been applicable since October 13, 2017.