Itc on reverse charge u/s 9(3)
This query is : Resolved
07 August 2018
Hello friends,
Whether ITC is available on GST paid u/s 9(3) i.e. on supply of goods or services specified by govt u/s 9(3)
Second, what is the due date of payment
Third, ITC available in the same month in which GST is paid under reverse charge
Whether ITC is available on GST paid u/s 9(3) i.e. on supply of goods or services specified by govt u/s 9(3)
Second, what is the due date of payment
Third, ITC available in the same month in which GST is paid under reverse charge
07 August 2018
Yes you can take ITC u/s 9(3)
All payments must be made within 6 month
ITC on Rcm Not much clear. Kindly wait new notification.
All payments must be made within 6 month
ITC on Rcm Not much clear. Kindly wait new notification.
07 August 2018
How to Claim Input Tax Credit in GST?
Let us now use an example to understand how to claim your input tax credit:
Suppose a company named XYZ Tyres Company (recipient) made a purchase of 10 tons of rubber from another company named ABC Rubber Company (supplier). Both the companies are registered for GST. The two companies will reconcile their transactions, and the recipient will claim the input tax credit, as follows:
ABC Rubber Company will file the GSTR 1 report (Details of outward supply).
The details furnished in the GSTR-1 will be automatically fetched in the GSTR-2A (Details of inward supply) for XYZ Tyres Company, where they will be able to see the transaction details.
XYZ Tyres Company will then check the records and make any necessary modifications / additions if any.
Once the changes are made, this information will be automatically pulled when they will file the GSTR-2. The correct input credits will then be credited to their electronic credit ledger.
ABC Rubber Company can then use the GSTR-1A form to view and accept the changes that XYZ Tyres Company made in the GSTR-2.
Finally, once ABC Rubber Company has filed the monthly returns (GSTR-3) and has paid the respective tax liability, XYZ Tyres Company will be able to avail the input tax credit and apply it to future output tax liabilities.
In cases where the tax on purchases is higher than the tax on sales, the extra input credit can be carried forward or claimed as refund.
Let us now use an example to understand how to claim your input tax credit:
Suppose a company named XYZ Tyres Company (recipient) made a purchase of 10 tons of rubber from another company named ABC Rubber Company (supplier). Both the companies are registered for GST. The two companies will reconcile their transactions, and the recipient will claim the input tax credit, as follows:
ABC Rubber Company will file the GSTR 1 report (Details of outward supply).
The details furnished in the GSTR-1 will be automatically fetched in the GSTR-2A (Details of inward supply) for XYZ Tyres Company, where they will be able to see the transaction details.
XYZ Tyres Company will then check the records and make any necessary modifications / additions if any.
Once the changes are made, this information will be automatically pulled when they will file the GSTR-2. The correct input credits will then be credited to their electronic credit ledger.
ABC Rubber Company can then use the GSTR-1A form to view and accept the changes that XYZ Tyres Company made in the GSTR-2.
Finally, once ABC Rubber Company has filed the monthly returns (GSTR-3) and has paid the respective tax liability, XYZ Tyres Company will be able to avail the input tax credit and apply it to future output tax liabilities.
In cases where the tax on purchases is higher than the tax on sales, the extra input credit can be carried forward or claimed as refund.
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