QUESTION
supplier has sent the material on 29th march 2018 but we have
received the same on 2nd april 2018. Please suggest where should i have to show
the ITC of the same in GSTR 9 and GSTR-9C. Further we have paid GST under RCM
pertaining to F.Y 2017-18 in 2018-19.. where we have to show the same in GSTR-9
and 9C. Can we take the ITC, if we paid GST under RCM during the audit now.
ANSWER
Facts of the case:
1. Treatment of ITC in case supplier had sent goods in March 18
but was received in April 18 in Annual Return.
2. Treatment of GST paid under RCM of F.Y
2017-18 in 2018-19 in Annual Return.
3. Can we take the ITC, if we paid GST under RCM
during the audit now
Law Applicable:
Section 16: Eligibility and conditions for taking input tax
credit.
(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,''
a) he is in possession of a tax invoice or debit note issued by a supplier
registered under this Act, or such other tax paying documents as may be
prescribed;
b) he has received the goods or services or both.
(4) A registered person shall not be entitled to take input tax credit in
respect of any invoice or debit note for supply of goods or services or both
after the due date of furnishing of the return under section 39 for the month of
September following the end of financial year to which such invoice or invoice
relating to such debit note pertains or furnishing of the relevant annual
return, whichever is earlier
Provided that the registered person shall be entitled to take input tax
credit after the due date of furnishing of the return under section 39 for
the month of September, 2018 till the due date of furnishing of the return under
the said section for the month of March, 2019 in respect of any invoice or invoice
relating to such debit note for supply of goods or services or both made during
the financial year 2017-18, the details of which have been uploaded by the
supplier under sub-section (1) of section 37 till the due date for furnishing
the details under sub-section (1) of said section for the month of March, 2019
Press Release dated 03/07/2019
Clarification regarding Annual Returns and Reconciliation Statement
g) Reverse charge in respect of Financial Year 2017-18 paid during Financial
Year 2018- 19: Many taxpayers have requested for clarification on the
appropriate column or table in which tax which was to be paid on reverse charge
basis for the FY 2017-18 but was paid during FY 2018-19. It may be noted that
since the payment was made during FY 2018-19, the input tax credit on such
payment of tax would have been availed in FY 2018-19 only. Therefore, such
details will not be declared in the annual return for the FY 2017-18 and will
be declared in the annual return for FY 2018-19. If there are any
variations in the calculation of turnover on account of this adjustment, the
same may be reported with reasons in the reconciliation statement (FORM
GSTR-9C).
Interpretation:
Section 16 (2) states that 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 has received the goods or services or both. In
your case supplier has sent the material on 29/03/2018 but you have received the
same on 02/04/2018. Therefore as per section 16(2), you are entitled to take the
credit of same in financial year 2018-19 because you have received the material
in 2018-19 and you have to show the ITC of the same in GSTR-9 and 9C of
financial Year 2018-19.
In regards to GST paid under RCM for the F.Y 2017-18 in 2018-19, it may be noted
that since the payment was made during F.Y 2018 -19, the input tax credit on
such payment of tax would have been availed in FY 2018-19 only. Therefore, such
details will be declared in the annual return for FY 2018-19.
In respect of GST paid under the RCM, you are not entitled to take ITC after the
due date of furnishing of the return under section 39 for the month of September
following the end of financial year to which such invoice or invoice relating to
such debit note pertains or furnishing of the relevant annual return, whichever
is earlier. The said last date was extended by the proviso inserted to section
16(4) upto 31st March 2019. As in your case, the tax is paid now which is after
the last date of availing ITC so, you cannot take the ITC of GST paid under RCM.
Conclusion:
1. The ITC of the material
received on 02/04/2018 will be shown in GSTR-9 and GSTR-9C of F.Y 2018-19.
2. The details of GST paid under RCM for the
Financial Year 2017-18 in 2018-19 and ITC thereon will be declared in the Annual
Return for F.Y 2018-19.
3. Time period for
claiming ITC for FY 2017-18 and 2018-19 has lapsed and thus cannot be availed
now.