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?
6 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 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...!!!")
(128091 Points)
Replied 22 November 2019
Please refer Section 16 of CGST Act - Eligibility and conditions for taking input tax credit
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.
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.
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