GEM Portal , which option is suitable for govt organisations ?
ITC route or RCM ?
Replies (6)
Quick Summary
This discussion explores whether government organisations should use the ITC (Input Tax Credit) or RCM (Reverse Charge Mechanism) route on the GEM Portal. It clarifies that this is a GST-related issue concerning ITC and RCM under GST. The core problem for government organisations is that they typically cannot claim ITC. However, ITC can be availed if inputs or input services are used for providing taxable services. Since the GEM Portal involves two-way bidding, many inward supplies may be exempt or subject to RCM.