RCM not paid to DRC Challen

[Bayyareddy DK]

Dear Sir,

My client paid voluntarily RCM for the financial year 2020-2021 in the months from April 2021 to Sep 2021 by adding in the Form 3B Return. He did not use DRC-3 Challen. Is he correct or he has to pay again now using DRC-3 challen where he will not get the input tax credit?. Please advice.

AI Summary

Client's Reverse Charge Payment via GSTR-3B for 2020-21 Compliant; No DRC-03 Needed, ITC Safe, Section 39(9) Discussed A client voluntarily paid Reverse Charge Mechanism (RCM) for the financial year 2020-2021 through GSTR-3B between April and September 2021, instead of using DRC-03. Experts in the forum agree that this method is compliant and does not require repayment via DRC-03. They assert that credit should not be denied due to the payment method and that the GSTR-9 form accommodates such disclosures. Additionally, it is noted that the payment was not a result of scrutiny or enforcement by tax authorities, thus posing no legal risk to the client's Input Tax Credit (ITC). There is a query about potential interest on late payments, with reference to Section 39(9) of the CGST Act.