Forward tax charge gst related

The counterparty is fully eligible to claim ITC on the forward charge services. Your client needs to issue a valid tax invoice, upload it in their GSTR-1, and pay the tax via GSTR-3B so that it reflects in the counterparty's GSTR-2B for a smooth credit claim.

Yes, the recipient can claim ITC on GST paid under forward charge, subject to the standard Section 16 conditions.

The 5 conditions that must all be satisfied:
1. You have a valid tax invoice from the supplier showing GST charged
2. The supplier has actually paid that GST to the government (verified via GSTR-2B)
3. You have received the goods or services
4. The GST has been paid under forward charge (supplier collected and deposited)
5. The goods or services are not in the blocked credit list under Section 17(5)

The difference under RCM: when you pay GST directly under reverse charge, you claim ITC on that same GST in the same month of payment. Under forward charge, you wait for the supplier's invoice to reflect in GSTR-2B before claiming.

Key check: if the supplier has not filed their GSTR-1, the invoice will not appear in your GSTR-2B and you cannot claim ITC for that period. Follow up with the supplier on filing status.

This GST input tax credit eligibility guide (https://taxgarden.in/blog/gst-input-tax-credit-eligibility-gstr-2b-reconciliation) covers all 5 conditions and the GSTR-2B matching process.