ITC of RCM on supplies from unregistered persons

[Sooraj B]

Can ITC be availed of GST paid under RCM on supplies received from unregistered persons during 23-24, but paid in Dec-24 along with GSTR-3B? The time limit for raising a self invoice was introduced only from November 2024. So can we contend that since the service was received before November 2024 and the payment for the services was also made before November 2024, the rule regarding time limit for raising a self invoice is not applicable in this case and accordingly, the date of self invoice (raised in December 2024) shall be the invoice date for the purpose of ITC ? (applying the provisions of Section 14 of the CGST Act and the clarification issued in Circular 211)

AI Summary

GST Forum Debates ITC Claimability for RCM Payments on Unregistered Supplies; Section 14 CGST Act Deemed Inapplicable. A discussion on the Goods and Services Tax (GST) forum addressed whether Input Tax Credit (ITC) can be claimed for GST paid under the Reverse Charge Mechanism (RCM) on supplies from unregistered persons, with payment made in December 2024. Participants debated the applicability of the time limit for raising self-invoices, introduced in November 2024. One opinion suggested that the rule applies prospectively, meaning the date of the invoice issuance determines ITC eligibility. Another view asserted that ITC can be claimed from the date of the self-invoice, while acknowledging potential interest and penalties for delayed invoicing. The consensus was that Section 14 of the CGST Act is not applicable in this context.