Goods and Services Tax – GST – By: – Shripada Hegde – Dated:- 19-8-2017 Last Replied Date:- 27-10-2017 – Claiming Input Tax Credit not violating the provisions of GST Act is very much important as wrongly availing ITC would result in interest and penalty implications. At the same time it is also important that the ITC is availed and utilized without delay, failing which working capital may get impacted negatively. Keeping this in mind, this article intends to analyse the time at which one can take ITC in case of inward supplies liable to tax under RCM. Conditions for availing ITC have been put forth in Section 16(2) of CGST Act. The said section has been reproduced below for easy reference. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,- he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or s
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prescribed. Said such other documents have been prescribed in Rule 36 of CGST Rules. List of documents as per Rule 36 are as follows an invoice issued by the supplier of goods or services or both in accordance with the provisions of section 31 an invoice issued in accordance with the provisions of clause (f) of sub-section (3) of section 31, subject to the payment of tax a debit note issued by a supplier in accordance with the provisions of section 34 a bill of entry or any similar document prescribed under the Customs Act, 1962 or rules made thereunder for the assessment of integrated tax on imports an Input Service Distributor invoice or Input Service Distributor credit note or any document issued by an Input Service Distributor in accordance with the provisions of sub-rule (1) of rule 54 Sl. No. 2 in the above list refers to the Invoice to be raised when a registered dealer receives any inward supply from Un-registered dealer. Hence, it should be noted that unlike the previous regim
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ncurred. Hence, one may come to a conclusion, based on the above discussion, that ITC for RCM cases can be availed in the same month in which inward supply is received. – Reply By somayajulu csjr – The Reply = By means of which GST form can this self assessed RCM tax paid in cash can be claimed as ITC? GSTR-1 Offline Tool includes Business to Business (B2B), Business to Consumer inter-state for amount exceeding ₹ 2.5 Lakhs (B2CL), Business to Consumer less than ₹ 2.5 Lakhs (B2CS), Exports, Credit/ Debit Note (CDNR) and Credit/ Debit Note for unregistered Persons (CDNUR), Advances, Advance Adjustments and HSN. There is no way to upload the invoice issued in terms of section 31(3)(f) of CGST Act in GSTR-1 except indicating the number of invoices raised for inwardsupplies from unregistered suppliers under RCM. From the number of invoices GSTN cannot pickup the amount of tax paid to allow ITC. GST ITC-01 is not for section 16(2) read with section 41 & 39. Please clarify! –
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