Query related to gst on taking of input tax credit?
This query is : Open
21 July 2017
Dear Sir/Madam,
MR. B Supplying goods but having total turnover below exemption limit of 20lacs so he did not opt for GST registration (unregistered dealer), he is supplying goods which are chargeable at the rate of 18%. On his behalf company is paying tax on reverse charge basis, we as a company are availing @ 5% GST without input credit for output services.
1) Can we get input credit of same which we have paid on behalf of unregistered dealer i.e. MR. A??
2) Can we use the same for setting off against 5% tax liability that is to be paid??
Regards,
Rakesh
MR. B Supplying goods but having total turnover below exemption limit of 20lacs so he did not opt for GST registration (unregistered dealer), he is supplying goods which are chargeable at the rate of 18%. On his behalf company is paying tax on reverse charge basis, we as a company are availing @ 5% GST without input credit for output services.
1) Can we get input credit of same which we have paid on behalf of unregistered dealer i.e. MR. A??
2) Can we use the same for setting off against 5% tax liability that is to be paid??
Regards,
Rakesh
21 July 2017
if u r a company availing 5% gst without input tax credit than u can not avail credit of tax paid under reverse charge machanism
21 July 2017
Yes I agreed to Deepti Asawa...
You can't take ITC for RCM.
22 July 2017
Deepti,
If I am paying on behalf of my vendor/supplier than too Company's credit would be lost?
Regards,
Rakesh
If I am paying on behalf of my vendor/supplier than too Company's credit would be lost?
Regards,
Rakesh
24 July 2017
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