TaxTMI 
TaxTMI 
For the FY 2020-21, we have failed to pay RCM on Freight, Can we pay and claim ITC in FY 2021-22 sir
Section 16(4) vs RCM
26 Feb 2022 
5 Replies 
3741 Views Asked by
Reverse charge mechanism: late payment with interest can permit input tax credit recovery, though departmental dispute risk remains.
Payment of GST under the reverse charge mechanism for previously received freight services can be regularised by paying the outstanding tax with interest in a later period, and the recipient may claim input tax credit for that tax; however, practical risk of departmental dispute exists and may necessitate litigation depending on the taxpayer's risk appetite. (AI Summary)
Payment of GST under the reverse charge mechanism for previously received freight services can be regularised by paying the outstanding tax with interest in a later period, and the recipient may claim input tax credit for that tax; however, practical risk of departmental dispute exists and may necessitate litigation depending on the taxpayer's risk appetite. (AI Summary)