ITC on excess RCM paid

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Pardeep (Querist)
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27 November 2019 we paid more than 100 freight in a months some are less than 1500 and some are more than 1500 under RCM. So we are add all freight amount and paid tax 2.5% CGST & 2.5% SGST & claim total RCM paid so no change in our duty payable becouse of RCM. Someone said to me that you paying RCM On less than rs 1500 bills which is not payable so you can not claim ITC on excess RCM paid you need to claim refund and reversed ITC claimed. Is he correct. If Yes Plz Provided supporting section or Notification or other relevant Material.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 November 2019 Not correct. ITC can be claimed on full amount paid.

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Pardeep

Pardeep (Querist)
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27 November 2019 ANY SUPPORT SEC BECAUSE IN SUCH CASE NO NEED TO CALCULATE RCM JUST PAY IF NORMAL TAX IS PAYABLE BY YOU.

kathir

kathir (Expert)
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25 December 2019 Notification no 12/2017 CTR gives exemption for service provided by GTA, by way of transport in goods carriage of goods,
(a). where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed 1500
(b) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees 750.
This information can be lack many times from transporter so you cant take correct decisions as per law. so in my view, you can pay GST on GTA under RCM ( Don't consider 750 & 1500 exemption ) and avail full ITC on the same. Its not excess availnment so GST dept can't be disallowed your ITC.
Hope you can understand.

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