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Itc availed

30 April 2021

A supplier whose supply falls under the RCM then how he should get credit of ITC on input, because in the hands of supplier there is no any output tax liability so ITC remain unutilized.

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4 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 30 April 2021

The recipient can avail Input Tax Credit of GST amount that is paid under reverse charge on receipt of goods or services by him. The ITC is availed by recipient cannot be used towards payment of output tax on goods or services, the payment of tax under reverse charge only on cash.

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MOHAMMED HUSSAIN (ADMINISTRATION & INDIRECT TAXATION MATTERS) (134 Points)
Replied 30 April 2021

Mr.Abhishek Jha,

please be noted that when a supply falls under RCM and the supplier pays the GST in cash, the same can be claimed as ITC in his books of accounts and when there is no output tax, the ITC paid under RCM can be claimed as refund by filing necessary documents on GST portal. However, the refund is not eligible for exempted goods or services provided by the said supplier and such refund of ITC paid under RCM is only eligible for export of goods or services.

abhishek jha (53 Points)
Replied 30 April 2021

If suppose a GTA provide the services to a company (registerd person) and charging 100000 and gst of 18000,in this case 18000 (output tax liability) will deposited to the gst department by the company (liability of the co.)and 100000 paid to the GTA, if GTA having itc of 15000 then can gta adjust this against 18000. or if suppose company having itc of 15000 then can company adjust the same against 18000.