Reverse Charge is the masterstroke of GST but there are lot of unanswered questions
We all know that under Section 9(3) or 9(4) Receiver will be the Tax Payer on Inward Supplies.
He have to pay GST on or before 20th of Next Month.
It is also very clear that he is eligible to Input Credit of that RCM Paid (subject to Block list)
But the issue is – When ITC can be utilised ? In the same Month or Next Month.
So here is the answer –
INPUT CREDIT can be availed & utilized in the month of PAYMENT of TAX.
FOR EXAMPLE
| RCM INPUT | |||
| SUPPLY MONTH | TAX PAYMENT DATE | GSTR 3B DATE | ITC UTILIZED – MONTH |
| AUGUST 2017 | 18/09/2017 | 20/09/2017 | AUGUST 2017 |
| AUGUST 2017 | 20/09/2017 | 20/09/2017 | AUGUST 2017 |
| SEPTEMBER 2017 | 20/09/2017 | 20/10/2017 | SEPTEMBER 2017 |