Eligibility of ITC on RCM after expiry of time limit under section 16(4)

In case of reverse charge, the time of supply is be the earliest of the following dates:

• date of payment as per books of account or date of debit in bank account, whichever is earlier (30/09/2020)
• 60th day from the date of issue of invoice by the supplier (29/11/2020 i.e: 60th day from 30/09/2020)

Thus, time of supply would be 30th September, 2020.

Now, section 16(4) states that :

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.

However, CBIC has issued a Press release dated 03/07/2019, which states as under : 

Many taxpayers have requested for clarification on the appropriate column or table in which tax which was to be paid on reverse charge basis for the FY 2017-18 but was paid during FY 2018-19. It may be noted that since the payment was made during FY 2018-19, the input tax credit on such payment of tax would have been availed in FY 2018-19 only. Therefore, such details will not be declared in the annual return for the FY 2017-18 and will be declared in the annual return for FY 2018-19. If there are any variations in the calculation of turnover on account of this adjustment, the same may be reported with reasons in the reconciliation statement (FORM GSTR-9C).

Thus, referring the press release, you may be eligible to avail the Input Tax Credit on such payment of tax, provided the tax on such payment has been made in FY 21-22.