Itc on gst paid under reverse charge
This query is : Resolved
12 August 2017
dear all experts
if we use gta service and pay gst @5% under rcm
can we claim itc of gst paid?
in the notification of gst council there is 5% with no ITC
Kindly explain please ????
if we use gta service and pay gst @5% under rcm
can we claim itc of gst paid?
in the notification of gst council there is 5% with no ITC
Kindly explain please ????
12 August 2017
Sir, you can take ITC under RCM.
No itc is for service provider.
No itc is for service provider.
Message likes :
2 times
12 August 2017
ok thank u so much mam,
mam if u have any notification regarding this kindly send.
mam if u have any notification regarding this kindly send.
02 August 2024
Under GST, the Input Tax Credit (ITC) on GST paid under Reverse Charge Mechanism (RCM) can generally be claimed, but there are specific rules and exceptions depending on the type of service and notification provisions.
### **1. **ITC on GST Paid under RCM**
1. **Eligibility:**
- You are allowed to claim ITC on GST paid under RCM for services used in the course or furtherance of business.
- This includes services like transportation of goods where GST is paid under RCM, such as hiring of Goods Transport Agency (GTA) services.
2. **Specific Notification:**
- **Notification No. 13/2017-Central Tax (Rate)** and its amendments detail the services on which RCM is applicable.
- For GTA services, under GST, if the service is received from an unregistered supplier or under certain conditions, the recipient is liable to pay GST under RCM.
3. **Claiming ITC:**
- If you have paid GST under RCM, you can claim ITC on the same. The ITC should be reflected in your GSTR-3B return.
- Ensure that the GST paid under RCM is for services used in the course or furtherance of your business.
### **2. **5% GST Rate and ITC**
1. **Notification:**
- For some services, like the transportation of goods by GTA, the GST rate is 5%. According to **Notification No. 12/2017-Central Tax (Rate)**, the 5% GST rate is applicable on such services.
- The ITC on such services is generally available unless specifically blocked by the notification or rules.
2. **Blocked ITC Cases:**
- There may be cases where ITC is blocked for certain services under the GST Act. However, for GTA services, the ability to claim ITC should be generally available unless explicitly excluded in the notification.
### **3. **Key Notifications and Sections**
- **Notification No. 13/2017-Central Tax (Rate):** Lists services under RCM.
- **Notification No. 12/2017-Central Tax (Rate):** Specifies the GST rate for services and may include conditions for claiming ITC.
- **Section 16 of the CGST Act:** Details the eligibility and conditions for claiming ITC.
- **Section 17(3) of the CGST Act:** Provides exclusions and restrictions on ITC.
### **Steps to Claim ITC on RCM Paid:**
1. **Verify the Invoice:**
- Ensure that the GST is paid under RCM for the correct service and in the course of business.
2. **Reflect in GSTR-3B:**
- Report the ITC in your GSTR-3B return for the relevant period.
3. **Maintain Documentation:**
- Keep proper records of invoices and payment details to support the ITC claim.
4. **Consult Notifications:**
- Refer to the specific GST notifications and circulars to confirm the applicability of ITC for the service in question.
**If you have any specific concerns or the GST notification seems ambiguous, consulting a GST expert or legal advisor is recommended to ensure compliance and accurate ITC claims.**
### **1. **ITC on GST Paid under RCM**
1. **Eligibility:**
- You are allowed to claim ITC on GST paid under RCM for services used in the course or furtherance of business.
- This includes services like transportation of goods where GST is paid under RCM, such as hiring of Goods Transport Agency (GTA) services.
2. **Specific Notification:**
- **Notification No. 13/2017-Central Tax (Rate)** and its amendments detail the services on which RCM is applicable.
- For GTA services, under GST, if the service is received from an unregistered supplier or under certain conditions, the recipient is liable to pay GST under RCM.
3. **Claiming ITC:**
- If you have paid GST under RCM, you can claim ITC on the same. The ITC should be reflected in your GSTR-3B return.
- Ensure that the GST paid under RCM is for services used in the course or furtherance of your business.
### **2. **5% GST Rate and ITC**
1. **Notification:**
- For some services, like the transportation of goods by GTA, the GST rate is 5%. According to **Notification No. 12/2017-Central Tax (Rate)**, the 5% GST rate is applicable on such services.
- The ITC on such services is generally available unless specifically blocked by the notification or rules.
2. **Blocked ITC Cases:**
- There may be cases where ITC is blocked for certain services under the GST Act. However, for GTA services, the ability to claim ITC should be generally available unless explicitly excluded in the notification.
### **3. **Key Notifications and Sections**
- **Notification No. 13/2017-Central Tax (Rate):** Lists services under RCM.
- **Notification No. 12/2017-Central Tax (Rate):** Specifies the GST rate for services and may include conditions for claiming ITC.
- **Section 16 of the CGST Act:** Details the eligibility and conditions for claiming ITC.
- **Section 17(3) of the CGST Act:** Provides exclusions and restrictions on ITC.
### **Steps to Claim ITC on RCM Paid:**
1. **Verify the Invoice:**
- Ensure that the GST is paid under RCM for the correct service and in the course of business.
2. **Reflect in GSTR-3B:**
- Report the ITC in your GSTR-3B return for the relevant period.
3. **Maintain Documentation:**
- Keep proper records of invoices and payment details to support the ITC claim.
4. **Consult Notifications:**
- Refer to the specific GST notifications and circulars to confirm the applicability of ITC for the service in question.
**If you have any specific concerns or the GST notification seems ambiguous, consulting a GST expert or legal advisor is recommended to ensure compliance and accurate ITC claims.**
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