GST Reversal on RCM
Ankit Aggarwal (39 Points)
08 May 2020
Do I also have to reverse input under RCM if I have both taxable and non taxable supplies?
3 Replies
Asha Kanta Sharma
(Manager - Finance & Accounts)
(36398 Points)
Replied 08 May 2020
I think it same rule for all.
CA KAMAL MADAN
(CHARTERED ACCOUNTANT)
(147 Points)
Replied 08 May 2020
Yes if that input is used for providing non taxable supplies.
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 09 May 2020
Yes As per Section 17(2) the credit is available in proportion to taxable supply . So ITC need to be reverse supply in proportion to Exempted Supply
But as per the explanation under 17(3) being inserted vide Amendment Act 31 of 2018, the Exempted supply not include the value of activities specified in schedule III , except para 5 of Schedule III.
Hence if you are supplying any goods or services which are cover under Schedule III except para 5 , the ITC reversal is not required.
But as per the explanation under 17(3) being inserted vide Amendment Act 31 of 2018, the Exempted supply not include the value of activities specified in schedule III , except para 5 of Schedule III.
Hence if you are supplying any goods or services which are cover under Schedule III except para 5 , the ITC reversal is not required.
Recent Topics
- Recent HSN Changes - B2B and B2C
- New ITR FORMS 1 AND 4
- Changes in Form 15G and 15H, if any?
- Is Exam / Certification fee of directors allowed a
- Converting a Partner to Nominal Partner – Ze
- GST on labour charges in respect of manufacturing
- AIS not able to access
- GST Input Related Query for Cab Services
- Sale of Assets of Partnership firm
- Suggest a fasttrack class for CA Inter costing for
Related Threads
Trending Online Classes
-
Live Course on EPF & ESI Act - Mastercourse(With Govt Certificate)
Mr.Balamurugan Ranganathan16 June 2025
CAclubindia
