Find
Yes. RCM tax must be paid in cash by the return due date for the period. Paying it later attracts interest at 18 percent, even though ITC may be available after payment.
GST
Interest on reverse charge paid late
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Provisions
Sec 50(1), CGST Act 2017; Sec 9(3), CGST Act 2017
Analysis
If RCM of ₹9,000 on legal fees of January was paid in May, interest is for about 100 days: about ₹444. The ITC, once taken, depends on Sec 16(4) time limits. Track RCM monthly to avoid this.
Close
- Identify RCM liabilities by period.
- Pay in cash in the return for that period.
- If late, compute interest from the due date.
- Claim ITC after payment within time limits.
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