Itc for gst paid under rcm

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This query is : Resolved

VEMULA NAGARAJU (Querist)
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17 August 2017
Dear Sirs / Madam,

Can we take ITC for GST paid in the same month. If we take in this same month, this will not increase tax liability, in such case what is the benefit to the Government ? I got confused, can any one explain me.

CA Suresh Jain

CA Suresh Jain (Expert)
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18 August 2017 You can take the credit only after making the payment of RCM

CA Suresh Jain

CA Suresh Jain (Expert)
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18 August 2017 ITC against RCM is to be treated same way as that of ITC against GST charged by other suppliers
N Jain
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VEMULA NAGARAJU

VEMULA NAGARAJU (Querist)
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18 August 2017 Thank you very much, so RCM shall be paid through cash ledger and then take ITC. We are not supposed set off against RCM payable against GST paid on other purchases.

VEMULA NAGARAJU

VEMULA NAGARAJU (Querist)
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18 August 2017 Thank you very much, so RCM shall be paid through cash ledger and then take ITC. We are not supposed set off against RCM payable against GST paid on other purchases.

CA Suresh Jain

CA Suresh Jain (Expert)
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18 August 2017 No you can not setoff against RCM payable

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