QUESTION

I want to know the treatment of taxes paid under reverse charge mechanism on my inward supplies 1. I have paid say Rs. 100 each CGST and SGST under RCM 2. There is no provision to show inward supplies liable to reverse charge in GSTR 1 3. I have shown these in Table 3.1 (d) in GSTR 3B 4. When I claim the ITC of taxes paid under RCM in next month under Table 4 (A) (3), it gets highlighted in red in the common portal. - Whether my treatment is correct? - Should I ignore the red highlighted GSTR 3B in the month in which I claim the ITC - Also please suggest if any alternate treatment is possible, whether in GSTR 1 or 3B

ANSWER

In case of RCM, credit can be availed in same month when tax is paid, there is no need to wait till next month.

Outward supplies attracting RCM are shown in Table 4B of GSTR-1, however there is no provision to show inward supplies liable to RCM in GSTR-1.
When supplier files his GSTR-1 showing Outward supplies attracting RCM, the same will reflect in recipients GSTR-2A/2B and accordingly in GSTR-3B.
If the figures auto populated in GSTR-3B are changed, it gets highlighted in red, so you are suggested to ignore that if you are actually eligible for ITC as per the conditions given in Section 16(2) read with Rule 36(4).(Reply dt.03/09/2021)