9911796707
TMI BlogITC on delayed deposit of RCMX X X X Extracts X X X X X X X X Extracts X X X X ..... ITC on delayed deposit of RCM X X X X Extracts X X X X X X X X Extracts X X X X ..... RCM & claim the ITC. If yes, how to do that. Reply By YAGAY andSUN: The Reply: In the given scenario, since the DRC 01A has been issued under Section 73 of the CGST Act, 2017, it implies that the tax authorities have raised a demand for the non-payment of RCM (Reverse Charge Mechanism) on the mining royalty for the FY 2021-22. Given that the royalty has been paid but the RCM was not deposited, y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ou can still discharge the RCM liability by making the payment along with any applicable interest, if required, as per the provisions of Section 75. Upon payment of the due tax, you can claim the input tax credit (ITC) on the RCM paid, provided the conditions under Section 16 of the CGST Act are met, i.e., the tax paid is used for the business and the relevant tax invoices are available. To depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it the RCM, you would need to go through the GSTR-3B filing mechanism by paying the RCM tax under the appropriate head (GST under reverse charge). Post payment, the ITC can be claimed in the GSTR-3B for the corresponding period. Ensure compliance with the timelines specified under Section 73 and Section 75, including the payment of any applicable interest for delayed deposit. Note: Please also c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsult with your GST Consultant as this discussion is not an Legal Opinion. Reply By SUSHIL BANSAL: The Reply: Dear Sir, Thanks for your quick response.My point is whether I can claim ITC of RCM related to FY 2021-22 in the current Fy 2025-26 & further if tax is deposited through 3B, whether the department will accept it.I think they will insist for DRC-03 & if we deposit through DRC 03,how&nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p; can I claim ITC.
Reply By YAGAY andSUN:
The Reply:
If Demanded tax is deposited now but prior to issuance of any SCN, then ITC may be availed but if SCN is already been issued then such amount will not be available for claiming or availing ITC as it will be form part of Consumers' welfare fund. X X X X Extracts X X X X X X X X Extracts X X X X
|
