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GST

Reverse charge ITC shown as excess over GSTR-2B

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ITC on reverse charge is claimed on tax you paid yourself, so it does not come from a supplier's GSTR-1 in the same way. Depending on how it was reported in GSTR-3B, it can show as a difference against GSTR-2B. GSTN also offers an RCM ITC statement to track this credit.

Provisions

Sec 9(3), CGST Act 2017; Sec 16(2), CGST Act 2017; Rule 88D, CGST Rules 2017

Analysis

If you claimed RCM credit of ₹36,000 in Table 4(A)(3) after paying ₹36,000 RCM tax in cash in Table 3.1(d), explain this in Part B with the challan or GSTR-3B reference. Check that the RCM credit was not also typed into the 'all other ITC' row, which would double it. Keep the RCM liability and credit equal each month where fully eligible.

Close

  1. Check the RCM liability paid in Table 3.1(d)
  2. Check RCM credit is only in Table 4(A)(3)
  3. Explain the RCM amount in Part B
  4. Use the RCM ITC statement to keep a running balance

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