ITC on RCM

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If a registered person supplies goods or services under RCM, in such case will he be eligible for ITC in case of Inward Supply?

Replies (12)
GST Registered person under composite supply are not allowed to take input tax credit.
What if he is normal dealer other than sec 10?
As conditions for claiming ITC are satisfied , they can claim ITC!
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.
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.
Mr. Amal
Input tax credit will be allowed to the registered dealer of the tax paid by him under the reverse charge mechanism
Yeah u can't claim ITC , when u are exclusively dealing with supply.
Why, please explain Mr. jashwanth ji
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.
That also we explain above
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.

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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