If a registered person supplies goods or services under RCM, in such case will he be eligible for ITC in case of Inward Supply?
12 Replies
Asha Kanta Sharma
(Manager - Finance & Accounts)
(36398 Points)
Replied 17 May 2020
GST Registered person under composite supply are not allowed to take input tax credit.
jashwanth
(CA-PRACTICE)
(400 Points)
Replied 17 May 2020
As conditions for claiming ITC are satisfied , they can claim ITC!
sukhwani keyur
(588 Points)
Replied 17 May 2020
According to Section 17(2) of the CGST Act, 2017, Where the goods or services or both are used by the registered person
partly for effecting taxable supplies including zero rated supplies and
partly for effecting exempt supplies,
the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero rated supplies.
Further, as per section 17(3), the value of exempt supply under sub-section (2) shall be
such as may be prescribed, and
shall include
• supplies on which the recipient is liable to pay tax on reverse charge basis(i.e. RCM)
Therefore, if a registered person supplying goods or services under RCM in such case he will not be eligible for ITC in case of inward supply.
partly for effecting taxable supplies including zero rated supplies and
partly for effecting exempt supplies,
the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero rated supplies.
Further, as per section 17(3), the value of exempt supply under sub-section (2) shall be
such as may be prescribed, and
shall include
• supplies on which the recipient is liable to pay tax on reverse charge basis(i.e. RCM)
Therefore, if a registered person supplying goods or services under RCM in such case he will not be eligible for ITC in case of inward supply.
Anurag Yadav
(121 Points)
Replied 17 May 2020
NO .
person supply G/S under RCM not claim ITC .
Because u are bearing any GST person who bear the GST can only claim ITC u won't do it.
person supply G/S under RCM not claim ITC .
Because u are bearing any GST person who bear the GST can only claim ITC u won't do it.
suraj zanwar
(Student CA IPC / IPCC)
(352 Points)
Replied 17 May 2020
Mr. Amal
Input tax credit will be allowed to the registered dealer of the tax paid by him under the reverse charge mechanism
Input tax credit will be allowed to the registered dealer of the tax paid by him under the reverse charge mechanism
jashwanth
(CA-PRACTICE)
(400 Points)
Replied 17 May 2020
Yeah u can't claim ITC , when u are exclusively dealing with supply.
suraj zanwar
(Student CA IPC / IPCC)
(352 Points)
Replied 17 May 2020
Why, please explain Mr. jashwanth ji
jashwanth
(CA-PRACTICE)
(400 Points)
Replied 17 May 2020
A supplier cannot take Input Tax Credit of GST paid on goods or services used to make supplies on which the recipient is liable to pay tax under reverse charge.
The recipient can avail Input Tax Credit of GST amount that is paid under reverse charge on receipt of goods or services by him.
For claiming ITC u should have used the goods u purchased for supply of taxable goods.
The recipient can avail Input Tax Credit of GST amount that is paid under reverse charge on receipt of goods or services by him.
For claiming ITC u should have used the goods u purchased for supply of taxable goods.
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 20 May 2020
Dear Amal Srivastava
As per Section 17(2) & Rule 42, The supplies which are supplied by Supplier is under RCM is considered as Exempt Supply by Supplier.
When tax is not paid by Supplier on such supplies , then common ITC to extent must be Reversed.
As per Section 17(2) & Rule 42, The supplies which are supplied by Supplier is under RCM is considered as Exempt Supply by Supplier.
When tax is not paid by Supplier on such supplies , then common ITC to extent must be Reversed.
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4825 Points)
Replied 20 May 2020
Agree with Pankaj ji although, not just common ITC, all ITC related to RCM outward supply would not be eligible. For computation reference - Rule 42 (input & input services) & 43 (capital goods).
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