Priyanka (Chartered accountant) 20 September 2020
One of my client is GTA providing services on RCM. While filing 3B there is no GST liability and no ITC set off is taken. however can we accumulate GST paid by company on various revenue and capital expenditures while filing GSTR 3B ? so that it has got reflected in ITC ledger on GST portal over the period. is it allowed to accumulate ITC while providing services which are exempt or on RCM basis ? can we utilize such accumulated ITC balance in future on proportionate basis company provides any taxable service ?
kindly Guide. Thank you
Sagar Patel (Tax and Business Consultant) 20 September 2020
If You Client is GTA...and Providing all Services under RCM basic i.e 5% without ITC, than he can not take ITC of any Goods or service at all...
CA Sachin Jain (Practicing CA) 21 September 2020
When the outward supplies are liable to RCM, the supplier cannot claim any ITC.
Section 17 & 18
Rule 42 & 43
For further clarification contact CA SACHIN M JAIN
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