Claiming itc for import of services.

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I am using US-based autoresponder service for my business.  It comes under import of services.  So I will have to pay IGST for that.  Can I claim full ITC since I am using the service for furtherance of business?

Replies (10)

Yes. u can claim ITC after deducting GST collected in furtherance of business. However, ITC will have to be paid and ITC shall be taken in the next month.

Originally posted by : CA Charmie Jhaveri
Yes. u can claim ITC after deducting GST collected in furtherance of business. However, ITC will have to be paid and ITC shall be taken in the next month.

Can you explain this a bit?

Let's say: 

March

Export sales: Rs.30,000.  I don't charge GST (without payment of taxes under LUT). 

Intra-state Sale: Rs.1000 and charged 180 on that.

Import of service for Rs.5000 and I pay Rs.900 as IGST under RCM.

So I pay Rs.1080 GST for March GSTR-3B and claim Rs.900 as ITC while filing for April.  Is that right?

Originally posted by : CA Charmie Jhaveri
Yes. u can claim ITC after deducting GST collected in furtherance of business. However, ITC will have to be paid and ITC shall be taken in the next month.

 

Yes... I agreed with....

Also You can claim same month...

Originally posted by : Gnana Prakash



Originally posted by : CA Charmie Jhaveri



Yes. u can claim ITC after deducting GST collected in furtherance of business. However, ITC will have to be paid and ITC shall be taken in the next month.





Can you explain this a bit?

Let's say: 

March

Export sales: Rs.30,000.  I don't charge GST (without payment of taxes under LUT). 

Intra-state Sale: Rs.1000 and charged 180 on that.

Import of service for Rs.5000 and I pay Rs.900 as IGST under RCM.

So I pay Rs.1080 GST for March GSTR-3B and claim Rs.900 as ITC while filing for April.  Is that right?

 

You can claim that 900 on March GSTR-3B return (March GSTR-3B on or before 20th April)

Originally posted by : RAJA P M



Originally posted by : Gnana Prakash






Originally posted by : CA Charmie Jhaveri



Yes. u can claim ITC after deducting GST collected in furtherance of business. However, ITC will have to be paid and ITC shall be taken in the next month.





Can you explain this a bit?

Let's say: 

March

Export sales: Rs.30,000.  I don't charge GST (without payment of taxes under LUT). 

Intra-state Sale: Rs.1000 and charged 180 on that.

Import of service for Rs.5000 and I pay Rs.900 as IGST under RCM.

So I pay Rs.1080 GST for March GSTR-3B and claim Rs.900 as ITC while filing for April.  Is that right?





 

You can claim that 900 on March GSTR-3B return (March GSTR-3B on or before 20th April)

Does that mean I can claim it while filing March GSTR-3B next month?  I am little confused here because the other person said that I can claim it next month which I thought would be during May when filing April GSTR-3B.. 

Yes. You can claim 900 for April. This is because, GST on imports in n RCM basis and when GST is paid on RCM basis, it has to be paid in cash. Later, you can take ITC of the same.

You can pay on March-19 GSTR 3B return & You can claim ITC on March-19 GSTR 3B return...

Both entries will be in the same month return...

Thank you so much for all help.  smiley

Yes if all your outward supplies are tables. if some are not taxable ITC AVAILABLE ON PRORATA.

I claimed Rs.1256 as ITC for March.  It is in electronic credit ledger.  April month RCM tax is Rs. 2056.

Can I use Rs.1256 to pay April month's Reverse charge tax?

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