Much awaited Clarification on time limit under S.16(4) for RCM supplies received from unregistered persons – Circular 211 !!
[Big relief for recipients in case Mining Royalty , Purchase of Raw cotton , Transport from URD etc.]
- ITC of RCM on supplies received from Unregistered person to be availed on the basis of Self invoice as per 31(3)(f)
- Time limit of S.16(4) for availment of ITC in such cases of RCM shall be calculated w.r.t Financial year of issuance of such SELF INVOICE (& FY of Supply)
- In case such Self Invoice is issued after the time of supply of said supply and pays tax, he will be required to pay Interest on such delayed payment.
- Further dealer may be liable to penal action u/s 122 for delay in issuance of such Self Invoice.
Additional point from my side:-
Pls Note-ITC of tax paid u/s 74 is blocked u/s 17(5)(i)