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RCM and Electronic credit ledger

ITC / Input 502 views 3 replies

Can we claim ITC in GSTR 3B on the tax paid on supplies received on reverse charge basis. For example, GTA services on transportation of goods.

 

If yes, kindly confirm whether my understanding is right?

In April Rs 1000 GST is incurred on RCM basis.

In the GSTR 1 for April, we have to admit the RCM liability in GSTR-1 in Table 5.

In the GSTR 3B for April, we have to pay the amount  thru electronic cash ledger

In the GSTR 3B for May, we can claim the ITC of 1000.

Right?

Replies (3)
Hi Gowtham,

Yes, your understanding is correct. But please note that ITC against GTA service is ineligible ITC under 17(5) unless you are in the business of transportation.

Thanks
Bhavana K L
bhavana @ lbkca.in
L B K & Associates

Hi Mam,

 

But Section 17(5) says that only ITC on motor vehicles is a blocked credit with an exception to a person in GTA  business right?

Are you receiving GTA services or are you providing GTA services?


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