Taxpayer is providing catering services at different location of companies like Reliance, L& T.. etc
He is paying GST on this services @ 5%.
He is also providing housekeeping services and charged GST @ 18%
Now, on the other hand he is paying GST under RCM @ 5% for transportation charges and on kitchen Rent @ 18%.
Now my question is can he claim ITC of RCM paid on Transportation services and Renting exp?
Your client can claim Input Tax Credit (ITC) on the tax paid under Reverse Charge Mechanism (RCM) for transportation services and kitchen rent, but there are certain conditions to be met.
Conditions for Claiming ITC: -
*Payment of Tax*: The tax paid under RCM should be paid to the government. -
*Filing of Return*: The taxpayer should have filed the return in Form GSTR-3B. -
*Eligible Inputs*: The inputs should be used or intended to be used in the course or furtherance of business. Specifics for Transportation Services and Kitchen Rent: -
*Transportation Services*: ITC can be claimed on transportation services, as it is an eligible input for the taxpayer's business. -
*Kitchen Rent*: ITC can also be claimed on kitchen rent, as it is a necessary expense for the taxpayer's catering services. Important Note:
The taxpayer should ensure that all the conditions for claiming ITC are met, and the inputs are used for business purposes.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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