RCM GST ITC Paid

[Madhavan iyengar]

In Respect to tax payable under Reverse Charge Mechanism if the services pertain to FY 17-18 and Invoice is also of FY 2017-18

However the Company has made the payment of RCM in July 20

Is Company eligible to take credit of the aforesaid RCM ITC paid in July 20

IS this ITC hit by the provisions of sec 16(4)

AI Summary

Can Input Tax Credit be claimed for 2017-18 invoices under RCM in July 2020? Section 16(4) implications. A company inquired about claiming Input Tax Credit (ITC) for tax paid under the Reverse Charge Mechanism (RCM) in July 2020 for services and invoices from the fiscal year 2017-18. One respondent indicated that ITC could be claimed if the self-invoice is included in the July 2020 GSTR-3B return. Another argued that ITC is restricted by Section 16(4) of the CGST Act, as the original invoice was from 2017-18. Others noted that ITC is available post-payment and filing, but the situation may lead to litigation. The discussion highlighted differing interpretations and potential legal challenges.