ITC on RCM to be paid on import of services

[Shrikanth Parmarthy]

We got summons relating to RCM for the period FY 2018-19 to FY 2023-24 on import of services from a group company outside India. If we pay the RCM liability in FY 2025-26 before issue of SCN are we eligible for claim ITC. Suppose if we receive notice under section 73 or section 74 and then make payment of RCM liability then can we claim ITC.

Can anyone kindly help on this issue.

AI Summary

Services Imported from Group Company Trigger RCM Liability, Challenging Input Tax Credit Claim Conditions Under GST Sections 16(4), 73, and 74 A company received a summons for Reverse Charge Mechanism (RCM) on imported services from a group company for fiscal years 2018-19 to 2023-24. The key legal issue involves determining Input Tax Credit (ITC) eligibility when paying RCM liability in fiscal year 2025-26, either before or after receiving a show cause notice. Statutory provisions under GST Act, particularly Sections 16(4), 73, and 74, govern the ITC claim conditions and time limitations for tax payments and credit availment.