Input tax credit on reverse charge: entitlement depends on payment to the exchequer and declaration through returns.
ITC for tax paid under reverse charge is subject to combined RCM and ITC eligibility rules: possession of prescribed documents, receipt of supply, actual payment of tax to the government and return filing. Provisional self-assessed credit may be recorded but utilization and final entitlement depend on payment and return declaration. The article concludes that RCM ITC is effectively available only after payment and appropriate declaration through the return and ledger offset processes. (AI Summary)