Belated RCM payment filing DRC 03 using ITC, Goods and Services Tax - GST

[ashwin bhat]

Namaskaram

Tax Period 2019-20

Liability RCM (Transport charges Legal fees)

Payment Year : 2024-25

Filing Document DRC 03 :

Tax Component (RCM) Liability Paid using ITC in DRC 03

Interest paid by using Cash ledger in DRC 03

Is this acceptable ? Taxliability which is because of RCM previous years paid using ITC in DRC 03

Please guide

Posts / Replies

[KALLESHAMURTHY MURTHY]

Sir/Madam,

As per section 49(4) of the CGST Act 2017, ITC can only be used to pay output tax. Therefore tax under reverse charge shall be payable through cash only without availing the benefit of ITC.

So, tax paid under RCM is nothing but ITC misutilised, liable to be reversed and tax under RCM needs to be paid in cash along with interest for the further delayed period.

This is only my personal view not to be construed as legal advice.

[Sadanand Bulbule]

Mr.Murthy, your opinion is correct.

[KALLESHAMURTHY MURTHY]

Sri Sadanand Bulbule Sir, 

Thank You very much for supporting my views.