Reverse Charge Mechanisam, Goods and Services Tax - GST

[Mohideen A]

An registered STP unit having only Exports without IGST (LUT))having a permanent place of business within india has entered into a transaction with its parent company registered outside india. The associated enterprise has provided management support services to the said STP unit. The date on which the book entry was made is on March 31,2020. Is this transaction liable for RCM under import of services payable in cash. If liable also let us know whether credit against the same can be availed since this pertains to financial year 19-20.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

In my opinion you are liable to pay IGST under reverse charge since import of service will be treated as inter-state supply. You have booked this payment on 30.03.2020. Therefore you have to pay gst on or before 20.04.2020. If you pay beyond this date you have to pay appropriate interest. Regarding ITC you have to avail it on or before 20.10.2020, that is the last date for filing GSTR-3B return for September 2020. However now your claim for ITC will be time barred. Hence you cannot avail ITC now.

[Rajagopalan Ranganathan]

Sir,

Further to my reply dated 11.11.2020, if you pay the gst under RCM on or after 01.04.2020 you have a chance to avail ITC till you file your GSTR-3B return doe September 2021, that is, 20.10.2021.

[KASTURI SETHI]

Yes. ITC is available as opined by Sh.Ranganathan Sir at serial no.2 above.

[Mohideen A]

Thanks for the clarification