When can you take Input Tax Credit if GST RCM of Previous Year Paid in Next Year

By | October 22, 2018
(Last Updated On: October 22, 2018)

When to claim Input Tax Credit on Reverse Charge Mechanism

When can I take Input Tax credit , If GST under Reverse Charge Mechanism belonging to Financial year 2017-18 is paid in Financial Year 2018-19 ?

Answer : Input Tax Credit of RCM only after payment is made  : Recipient  can avail the ITC on goods and services on which he is liable to pay GST under reverse charge only after making payment of that tax in his electronic cash ledger – Rule 36(b) of CGST and SGST Rules, 2017 read with Section 31(3)(f) of CGST Act.

Input Tax Credit under RCM available only when you make payment – hence if you paid in FY 2018-19 then you cannot take Input Tax credit in previous year FY 2017-18 






Section 31(3)(f) of CGST Act :-

a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both

36. (1) The input tax credit shall be availed by a registered person, including the Input Service Distributor, on the basis of any of the following documents, namely,—

b) an invoice issued in accordance with the provisions of clause (f) of sub-section (3) of section 31, subject to the payment of tax




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