Transportation RCM which % Input Credit availability

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This query is : Resolved

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This discussion clarifies the use of input tax credit (ITC) for Transportation Reverse Charge Mechanism (RCM) at 5%. The user inquired if the 5% RCM ITC could be used to offset output tax payments. The response confirms that the 5% RCM ITC is indeed available and can be utilised from the ITC credit ledger, correcting a misunderstanding that only 12% RCM ITC was eligible.

ARCHANA

ARCHANA

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04 March 2022 Sir,

Transportation RCM 5% paying every month, Showing IT 3B RCM column and ITC Column.

Now my doubt is RCM ITC 5% , can we use Output Payment from ITC Credit Ledger.

Some one informed This RCM 5% ITC cannot take only 12% RCM will ITC Available, plz clarify my doubt.

Thanking you,