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RCM - 5

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Pradhish Raj

56 Points Posted on 19 November 2021

hi,

In my GSTR 2B there's a RCM reflected which is 5% .

can I pay the tax and claim input for the same ?

or only 12% RCM is eligible for input ? kindly guide.

Replies (3)

Quick Summary

This discussion clarifies whether input tax credit (ITC) can be claimed on Reverse Charge Mechanism (RCM) supplies taxed at 5% GST. It confirms that ITC is generally available on RCM transport charges paid at 5% GST, provided you have received the service and it's reflected in your GSTR 2B. The restriction applies to Goods Transport Agencies paying 5% GST themselves, preventing them from claiming ITC on their inward supplies.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 19 November 2021

12% GST with ITC

Pradhish Raj

56 Points Posted on 19 November 2021

If it is 5% we cannot claim ITC ?

Rajendra Prasad

Employee Private

1142 Points Posted on 19 November 2021

Please be firm and confirm by reading provisions and Notifications while answering.

Here we can avail ITC on payment of GST under Reverse Charge on Transport charges @ 5%.

The restriction is any Goods Transport Agency providing service and paying GST @ 5%, they cannot allowed ITC of their inward supply of goods in supplying such service of GTA.

And also it is clear that any amount shown in your GSTR 2B is not yours, instead of Goods or Services or Both has been received through proper document. Hence if you have been received such service from GTA, which has been shown in your GSTR 2B, then you have to pay GST under Reverse Charge and can avail ITC.