This discussion clarifies whether a consultancy firm can claim input tax credit (ITC) on a Reverse Charge Mechanism (RCM) invoice for security guard services. The consensus is that GST should be paid under RCM, and the ITC can then be claimed.
15 March 2023
We are a service provider (consultancy firm), and we used an agency to employ a security guard for our workplace. Recently, the agency sent out an RCM invoice.
My question is: may we input or claim this RCM? Please confirm.