Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Itc on rcm

yash (accountant) (519 Points)

21 November 2019

i m paying RCM on cab renting, now can i take the itc for the same?

Reply
Follow
Share

6 Replies

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 21 November 2019

Yes you can ...............

Upgrade to CAclubindia Pro. Subscribe Now!

RAJA P M ("Do the Right Thing...!!!") (128075 Points)
Replied 22 November 2019

Yes... You can claim ITC for payment of rcm amount...

yash (accountant) (519 Points)
Replied 22 November 2019

Is there any notification for taking the credit?

RAJA P M ("Do the Right Thing...!!!") (128075 Points)
Replied 22 November 2019

Please refer Section 16 of CGST Act - Eligibility and conditions for taking input tax credit

1 Like

CA Pranav Mishra (241 Points)
Replied 22 November 2019

Please also note that having paid GST / IGST on RCM basis, input tax credit would still not be available to the body corporate / service recipient. Under section 17(5) of CGST Act, 2017, renting or hiring of motor vehicle having approved seating capacity upto 13 persons (including driver) is not allowed as input tax credit. In view of this specific bar, GST liability paid by the body corporate on RCM basis will be an additional revenue cost.