REVERSE CHARGE INPUT CAN CLAIM AS INPUT CREDIT

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This discussion clarifies how to handle GST payments under the Reverse Charge Mechanism (RCM) for services such as security, legal expenses, and GTA. You can indeed use funds from your cash ledger to pay the RCM GST. Once paid, this amount can be claimed as Input Tax Credit (ITC), provided you meet the conditions outlined in Sections 16 and 17 of the GST Act.

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(Querist)
12 March 2021 sir,
my query is in RCM - like 1).security Service 2) Legal Expense 3) GTA - SERVICE RECIPIENT - IF I HAVE MONEY IN MY CASH LEDGER BOOK AND PAY THE REVERSE CHARGE AND ADD THAT REVERSE CHARGE INPUT TO THE ORIGINAL INPUT ?



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CA Altamush Zafar

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CA Altamush Zafar (Expert)
12 March 2021 Yes you have to pay GST in cash and then claim ITC subject to section 16 & 17
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Spurto Consultancy Services

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Spurto Consultancy Services (Expert)
12 March 2021 Yes you can use the cash ledger balance for RCM payment and then take the RCM paid as ITC.
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