RCM Tax ITC Not availibility no showing

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This discussion clarifies issues with claiming Input Tax Credit (ITC) for GST paid under the Reverse Charge Mechanism (RCM) on security services. Even if you've correctly paid RCM and the supplier's state matches the Place of Supply (POS), ITC might not appear in your GSTR-2B due to mismatches, particularly when the recipient's registered state differs from the POS. The key is ensuring your accounting and GST filings accurately reflect the recipient's GSTIN and the correct POS, which for services to a registered entity, is typically the recipient's location.

ARCHANA

ARCHANA (Querist)
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19 October 2023 Sir,

Security Services bill raising this is rcm we are paying and taking ITC GSTR2B showing POS and Supplier State are same but Recipient state is different ITC availibility No

I am not able to understand this sentence . we pay RCM or not , if pay we can take ITC

Plz kindly explain and guide me

Thanking you,

RAJA P M

RAJA P M (Expert)
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20 October 2023 Where is supplier gave service...???

ARCHANA

ARCHANA (Querist)
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21 October 2023 Sir, Service is giving in Mysore billing address in Hyderabad

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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20 July 2025 Got it — you’re dealing with RCM on Security Services where:

The supplier and place of supply (POS) are in the same state (say, Karnataka - Mysore),
But the recipient’s registered address is in a different state (Telangana - Hyderabad),
You’ve paid GST under RCM, but ITC is not showing in GSTR-2B.
Let me clarify the key points here:
Are you required to pay GST under RCM for Security Services?
Yes. Security services are under RCM. If your vendor is unregistered or falls under notified services, you as a registered recipient must pay GST under Reverse Charge.
Is ITC available on GST paid under RCM?
Yes. GST law allows you to take Input Tax Credit (ITC) on GST paid under Reverse Charge, subject to usual conditions (like invoice, use in business, etc).
Why is ITC not showing in GSTR-2B?
This can happen due to mismatch in state codes or GSTN details in your accounting entries or vendor invoice, especially if:

Place of Supply (POS) is Karnataka (Mysore),
Your GST registration is in Telangana (Hyderabad),
Supplier and POS state are same (Karnataka),
But recipient GSTIN is from Telangana.
The GST system expects ITC to reflect based on recipient’s registered state and place of supply.
How to fix this?
Ensure your reverse charge entry is recorded properly in your GST returns (GSTR-3B and GSTR-2A/2B).
When you book the invoice under RCM, use the recipient’s GSTIN and correct place of supply (which should be your registered state).
If POS is different from your registered state, GST rules get tricky — usually for services, POS is location of recipient if recipient is registered.
You should check with your vendor to confirm place of supply on invoice matches GST rules (likely place of supply should be your state — Hyderabad/Telangana).
Summary:
You pay GST under RCM on security services.
You can claim ITC on RCM paid GST.
ITC may not show in GSTR-2B if invoice details or POS mismatch.
POS for services to registered person is usually the recipient’s place (Hyderabad).
You need to ensure your accounting software and GST returns reflect correct POS and GSTIN.

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