Belated RCM payment filing DRC 03 using ITC

[hashwin RM]

Namaskaram

Tax Period 2019-20

Liability RCM (Transport charges Legal fees)

Payment Year : 2024-25

Filing Document DRC 03 :

Tax Component (RCM) Liability Paid using ITC in DRC 03

Interest paid by using Cash ledger in DRC 03

Is this acceptable ? Taxliability which is because of RCM previous years paid using ITC in DRC 03

Please guide

AI Summary

ITC Cannot Be Used for RCM Liabilities; Must Pay in Cash as per CGST Act Section 49(4. A participant in a discussion forum inquired about the acceptability of using Input Tax Credit (ITC) to pay a reverse charge mechanism (RCM) liability from the 2019-20 tax period in the 2024-25 filing year using DRC 03. An expert responded that, according to section 49(4) of the CGST Act 2017, ITC can only be used for output tax, and RCM liabilities must be paid in cash. The tax paid under RCM using ITC is considered misutilized and must be reversed, with the RCM tax paid in cash along with interest for the delay. Another participant agreed with this interpretation.