Sir,
Assume I make a purchase from Unregistered Dealer (URD) on date 15-Jul-2017. The invoice amount is Rs.10,000/-. As per RCM, the liability of tax is on me. At the rate of GST 18% , my liability is Rs.1800/- .
Please consider the following 2 scenarios for discharging my liability.
(1) I am paying GST of Rs.1,800/- in the month of July 2017 itself.
(2) I am paying GST of Rs.1800/- during return filing (ie. on 20-Aug-2017)
In both the above scenario, should i necessarily claim ITC for Rs.1800/- during filing of Aug 2017 returns or can i claim ITC during filing of Jul 2017 returns in the first scenario ?
Please clarify sir.
Input tax credit under RCM is available only once liability is paid.
In my opinion if you paid RCM withing July 2017, in that case you can claim credit of RCM within same month.
If you pay in August then anyhow, you have to claim in return to be filed for the month of August.
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