TRN -1 SUBMISSION, Goods and Services Tax - GST

[nandankumar roy]

we are filling TRN-1 . So pl tell input credit agst RCM can taken in this month or to be claim in next month only.so i have to change return and another thing we have credit of cenvat appx 1 core and in vat no credit and C FORM collection due appx 4 crore out of 10 cores 2% sales , in this situation vat liability will be arise how much amt ,pl confirm when we are going to submit TRN1 whether we have to pay cash agst vat liability amount agst not recd of c form amount or it will be adjust agst cenvat.

With Regards,

N KROY

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Posts / Replies

[RAMESH PRAJAPATI]

RCM credit is available in the same month. Need not to wait for next month.

If you have VAT credit to carry forward then details of statutory forms are to be given.

[KASTURI SETHI]

You are to first file TRANS 1 and thereafter GSTR 3 B your liability will be worked out by the system Common Portal by giving the benefit of balance carried forward. There after next return step by step.

[nandankumar roy]

we have credit of cenvat 1 crore and in vat there is no balance to transfer so pl tell what will be effect in TRN 1 form but liability related to c form so what should do now, pl advice . regards, n k roy

[Ganeshan Kalyani]

Sri Ramesh Ji, reverse charge liability should be paid by cash. It means the credit of the reverse paid can be adjusted in subsequent month.

[KASTURI SETHI]

Rightly advised by Sh.Kalyani ji. Also go through FAQs issued by the Board. There is solution to this problem. You will get benefit of credit against liability of Form C. You will not find the word Form C. There is provision for deemed credit. I think it will cover credit against your liability of Form C.

[RAMESH PRAJAPATI]

By a tweet , GOI has clarified that ITC in case RCM can be taken and utilised in the same month. In support of this a well drafted article "when can one take ITC for RCM Cases" has been published by TMI today itself.

[KASTURI SETHI]

Yes. Sir.Only condition is to pay first cash and then take credit. Credit can be taken on the same day after payment in cash. No need to wait for next month.

[Ganeshan Kalyani]

In service tax era the credit of the tax paid was based on the tax paid challan. For eg if RCM tax of July 2017 is paid in Aug 2017. Then credit of the tax paid in Aug can be set off against Aug month liability payable in September. In this case government is getting cash for one month.

Under GST if it said that the credit is eligible immediately i.e. say if July 2017 RCM liability is paid on 15th of August 2017 and the credit of the said payment is adjusted against GST payable for July month and it is adjusted on 15th itself or say latest by 20th then there is no logic of mentioning in law that RCM should be paid in case.

In service tax they were getting revenue to use as working capital for one month as credit was allowed in the next month only. Under GST if ITC is allowed in the same month then logically there is no benefit to government. Then just to comply the assesse will pay the RCM liability on 15th in the morning and the credit of the said tax paid they will adjust against the other liability in the evening.

Dear Expert collegues share your view in this regard. Thanks.

[Ganeshan Kalyani]

Please read "cash " instead of "case". Wrongly typed.