ITC paid on RCM supplies from Unregistered Dealer - 2B Vs. Books Vs. 3B

[ANILKUMAR CHERUKU]

When GST paid on RCM basis in respect of services from unregistered (URD) eg. office rent paid for residential building. Once the GST paid on RCM basis, we claim ITC and book the GST liability, however, since the URD cannot report the same with GST Department.

1. ITC on GST paid on RCM is available in books and not available in GSTR 2B due to above reason

2. GST liability on the RCM is already discharged

3. When ITC is claimed as per books, it is not matching with GSTR 3B as the URD cannot submit the GST invoice and same do not appear in GSTR 2B. Can we claim the ITC as per books without ignoring the GSTR 2B.

4. What are the consequences due to above.

AI Summary

Input tax credit on RCM available based on self-invoice even if not reflected in GSTR 2B, disclose separately in returns.
ITC for tax paid under the reverse charge mechanism on supplies from unregistered persons is claimable by the registered recipient on the basis of a self-invoice as required by section 31(3)(f); the restriction in section 16(2)(aa) that links ITC to supplier furnished outward supply details in GSTR 2B applies only to invoices/debit notes from registered suppliers and does not prevent claiming ITC where tax is paid on RCM. Rental agreements do not substitute for the mandated self-invoice, and RCM entries must be disclosed separately in returns.