Reverse charges on international transaction through Corporate Credit card

[AdvMurari Kumar]

Hi,

We hade a transaction with facebook irland in 2017-18 through corporate credit card, Since card bill was in INR so we booked the expenses and make payment against the card.

Now we realized that this was import of service and attract the RCM payable, can you please suggest whether we are liable to pay RCM with interest.

Also since this was related to F.Y. 2017-18 can we claim RCM input now after paying RCM

AI Summary

Reverse charge mechanism applies to imported services via corporate card, requiring payment of GST with applicable interest.
Assuming the corporate card transaction is an import of services taxable under the reverse charge mechanism, the recipient is liable to pay GST under RCM with applicable interest. Claiming input tax credit for RCM paid in a prior year is contested and may be barred by time limits on self invoicing; attempting to avail ITC now risks departmental challenge and a show cause notice.