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TMI BlogITC paid on RCM supplies from Unregistered Dealer - 2B Vs. Books Vs. 3BX X X X Extracts X X X X X X X X Extracts X X X X ..... ITC paid on RCM supplies from Unregistered Dealer - 2B Vs. Books Vs. 3B X X X X Extracts X X X X X X X X Extracts X X X X ..... he GST liability, however, since the URD cannot report the same with GST Department. 1. ITC on GST paid on RCM is available in books and not available in GSTR 2B due to above reason 2. GST liability on the RCM is already discharged 3. When ITC is claimed as per books, it is not matching with GSTR 3B as the URD cannot submit the GST invoice and same do not appear in GSTR 2B. Can we claim the ITC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per books without ignoring the GSTR 2B. 4. What are the consequences due to above. Reply By Padmanathan Kollengode: The Reply: Matching with GSTR-2B is not required for ITC on RCM paid on inward supplies from unregistered persons. For easy reference, I am extracting section 16(2): (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h other tax paying documents as may be prescribed; (aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37; Thus, the communication to recipient in GSTR-2B under clause (aa) is requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red only for tax invoice and debit note only. In case of RCM on unregistered persons, ITC is availed on the basis of self-invoice as required to be made under Sec. 31(3)(f) and it is not covered under clause (aa). Even under GSTR-9, there will not be any mismatch in Table 8 as RCM is separately disclosed. Reply By ANILKUMAR CHERUKU: The Reply: Many thanks Padmanathan K for sharing the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extract of the section for easy reference. However, in case of Rent paid to Unregistered Person (URD) for use of his Residential Building by Registered person for commercial purposes (office), the payment of rent is based on the rental or lease agreement. The RCM payment is supported by rental agreement instead of a invoice or debit note. Believe, the rental agreement can be considered as a vali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d document similar to invoice or debit note for claiming the ITC in GSTR 3B. Reply By Padmanathan Kollengode: The Reply: Dear ANILKUMAR sir, No sir. Sec 32(3)(f) mandates a self-invoice for claiming ITC. Hence, rent agreement will not suffice for GST ITC purpose Reply By Padmanathan Kollengode: The Reply: Sorry. Please read as 31(3)(f) in the above post. Reply By ANILKUMAR CHERUKU: The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : Once again thank you for clarifying and requoting the relevant section. I missed to mention that, self invoicing is a pre-condition for paying GST on RCM basis and issuing the same to Unregistered person(URD). Well noted. Reply By Amit Agrawal: The Reply: I agree with Shri Padmanathan Kollengode Ji! Restrictions u/s 16(2)(aa) does not apply to the given situation. These are ex facie views o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f mine and the same should not be construed as professional advice / suggestion. Reply By Shilpi Jain: The Reply: Self-invoice is an invoice for the purposes of GST Law. The requirement of the invoice to appear in GSTR-2B does not apply since the self-invoice is not a document required to be disclosed in GSTR-1 in terms of section 37 and not merely beacuse there is no invoice issued for this tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansaction.. X X X X Extracts X X X X X X X X Extracts X X X X
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