Credit of input under rcm
This query is : Resolved
02 October 2017
Mr. A is a trader and deals in both taxable and exempt supplies. He pays CGST and SGST under RCM. Now he wants to know whether he can claim full ITC of the tax paid under RCM or has reverse the proportionate tax relatable to exempt supplies.
02 October 2017
If you paid tax under RCM basis then you can claim full ITC based on rules...
Also, You can deal Exempt supplies then No need reversal of Tax paid amount as RCM...
Also, You can deal Exempt supplies then No need reversal of Tax paid amount as RCM...
CA Rashmi Gandhi
(Expert)
02 October 2017
You can claim full ITC. No need to reverse any ITC
31 October 2026
Full ITC is not allowed: tax paid under RCM is ITC like any other, so if the service is used exclusively for exempt supplies it is blocked, and if used commonly for taxable and exempt supplies the proportionate part must be reversed under Rule 42 (Rule 43 for capital goods).
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