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RCM payment : Transport

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Ashu jain

Practicing

126 Points Posted on 08 March 2020

If a person who availed the transport services, who was suppose to pay GST by RCM at the rate of 5 percent, paid at the rate of 12 percent by mistake.

Is he eligible to claim ITC for the whole of 12 percent (Whereas he was required to pay only 5 percent by RCM and claim ITC of 5 percent)

Thanks & Regards

Replies (4)

Quick Summary

This discussion addresses a common query regarding Reverse Charge Mechanism (RCM) payments for transport services. If an individual mistakenly paid 12% GST under RCM when only 5% was due, the consensus is that they can indeed claim Input Tax Credit (ITC) for the entire 12% paid. The ability to claim ITC is not dependent on paying the correct RCM rate, but rather on the fact that the tax was paid.