Can ITC of RCM liability of FY 2017-18 paid now by DRC-03 be availed in the GSTR-3b of Sep-2020 ?? Can the provisions of Section 16 restrict the above ITC ?? Is the ITC of GST paid under RCM not available on payment basis /

Reply—As per section 16(4) of CGST Act, a registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier.

As pe section 2(62) of CGST Act, “input tax” includes the tax payable under the provisions of sub-sections (3) and (4) of section 9, therefore a taxpayer cannot claim ITC after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice.

Therefore ITC cannot be claimed now for payment of RCM in respect of financial year 2017-18.