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Availability of input tax credit on service tax paid under RCM

09 August 2017

Can the service tax paid under reverse charge mechanism for the month of June 2017 on 6th July 2017 be availed as service tax credit under transition provision of GST?

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5 Replies

Revanth (Kumar) (258 Points)
Replied 10 August 2017

Status of your last quarter (apr-jun) service tax return.. Do you have excess credit?

RAMESH D MODI (Proprietor) (4864 Points)
Replied 10 August 2017

if yes it is allowed.

sahil (student) (127 Points)
Replied 10 August 2017

no credit is not allowed as credit in service tax is available only if it is paid in cash and in this case payment made in the month of July.
So, as per service tax, credit can be availed in july and their is no mechanism to take credit of service tax in july

kowsalya srinivasan (13 Points)
Replied 10 August 2017

please mention the section number under which either we can take credit or we can't take credit. It's not mentioned in section 140 of GST act.

sahil (student) (127 Points)
Replied 03 September 2017

no it is not mentioned in cgst act rather it is stated in service tax that credit of rcm is taken only in the month in which payment is made i.e. july but for the month of july for return for service tax is filed.
So practically you can't take credit