RCM of F.Y.19-20 DECLARED IN F.Y.20-21, Goods and Services Tax - GST

[NISHANT SHAH]

My Client had paid GST on RCM for one invoice on Aug-2020 i.e, in F.Y.20-21.

How should it be reported in Table 9 of GSTR-9? Should we add liability in Table 9 as Tax Payable ??

Posts / Replies

[Rajagopalan Ranganathan]

Sir,,

. If the tax is paid in August 2020, then you can take the credit till date of filing of GSTR-3B return for September 2021, that is 20.10.2021.

[NISHANT SHAH]

Sir, I already taken credit in Sep-2020 3B Return but in GSTR-9, where should we report RCM Liab. GSTR-9C?

My view is that we disclosed it in (Table 9P of GSTR-9C as Liability) and Difference between Tax Payable (9P) and Tax Paid (Table 9Q of GSTR-9C) would be regarded as tax payable for rcm for 19-20 which was paid in 20-21. We put a note that difference in unreconciled tax payment(Table 9R) was on account of liab. of rcm which was paid in 20-21 and challan has been attached in GSTR-9C to that effect.

[Shilpi Jain]

Please refer to point g in the press release Clarification regarding Annual Returns and Reconciliation Statement

However, suggested that this RCM be disclosed in the current year GSTR-9 if the expense is booked in the current year in the books in order to substantiate payment of liability to department if required in future.

[NISHANT SHAH]

Thanks to both experts.

[nandkumar choudhary]

i am a trader and deals in rice,wheat ,jawar, dall and i purchased these from the miller/ wholsaler the miller print the dicliamer regarding forgoing of brand on bill as well as on the pack of 25/30 kg whether is it my duty to producing that affidivit which they give their are commissioner of gst or not as the department is asking for me to produce and says it is my duty otherwise they will charged gst plus penaulty pl guide or if any case law is there pl give it

[Shilpi Jain]

The person who owns the brand is the person who is required to give the disclaimer. Pls have a look at the rate or the exemption notification which gives the filing of affidavit. Extracts below

For foregoing an actionable claim or enforceable right on a brand name,-

(a) the person undertaking packing of such goods in unit containers which bears a brand name shall file an affidavit to that effect with the jurisdictional commissioner of Central tax or jurisdictional commissioner of State tax, as the case maybe, that he is voluntarily foregoing his actionable claim or enforceable right on such brand name as defined in Explanation (ii)(a); and

(b) the person undertaking packing of such goods in unit containers which bear a brand name shall,on each such unit containers, clearly print in indelible ink, both in English and the local language,that in respect of the brand name as defined in Explanation (ii)(a) printed on the unit containers he has foregone his actionable claim or enforceable right voluntarily.

22 [Provided that, if the person having an actionable claim or enforceable right on a brand name and the person undertaking packing of such goods in unit containers are two different persons, then the person having an actionable claim or enforceable right on a brand name shall file an affidavit to that effect with the jurisdictional Commissioner of Central tax or jurisdictional Commissioner of State tax,of the person undertaking packing of such goods that he is voluntarily foregoing his actionable claim or enforceable right on such brand name as defined in Explanation (ii)(a); and he has authorised the person [undertaking packing of such goods in unit containers bearing said brand name] to print on such unit containers in indelible ink, both in English and the local language, that in respect of such brand name he [the person owning the brand name] is voluntarily foregoing the actionable claim or enforceable right voluntarily on such brand name.]