RCM Dobut Clear

This discussion clarifies the process of paying and claiming Input Tax Credit (ITC) for services where the Reverse Charge Mechanism (RCM) applies, specifically for GTA (Goods Transport Agency) services. It explains that tax under RCM is paid at a 5% rate and subsequently claimed as ITC. The recipient of the service is eligible to claim this credit, regardless of whether the tax was paid at 5% or a higher rate, as the restriction is on the supplier, not the recipient.