Input credit on krishi kalyan cess

As per the provisions of Rule 3 of CENVAT Credit Rules, 2004,  as amended by Notfn No. 28/2016-Central Excise (N.T.), Dated: May 26, 2016, availment and utilisation of KKC is permissible for service providers -

"(1a) A provider of output service shall be allowed to take CENVAT credit of the Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016);";

"(d) Cenvat credit in respect of Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016) shall be utilised only towards payment of Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016)";

Thus a service provider can avail Cenvat of KKC and utilise it for payment of KKC on the output service.