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Rcm under cab rent service and itc

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harshal

student

38 Points Posted on 23 June 2021

Dear all,
I have a query regarding transaction of cab rent service..i have following issues.
we are body corporate and service provider is individual.
1) if cab rent provider has issued invoice with 5% gst charged on invoice and if we had paid all amount including GST to vendor, is there any liability under rcm at our side?
2) if we have taken tax credit of 5% gst charged on bill, what are the non compliance at our end as it is blocked under Act.
3) what are the non compliances in this case of we have taken wrong tax credit and avail the same?
thanks & regards,
Harshal raval

Replies (3)

Quick Summary

This discussion clarifies the GST implications for body corporates receiving cab rent services from individual providers. It explains that the RCM liability rests with the body corporate, regardless of whether the supplier charges GST. The advice includes reversing any wrongly claimed Input Tax Credit (ITC) with interest and paying the 5% GST under RCM before re-claiming ITC. Failure to comply can lead to penalties, especially since cab rent is considered a blocked credit.

Abc

Xyz

38 Points Posted on 25 June 2021

The liability under rcm falls upon your side, you being a body corporate, no matter supplier has charged gst or not. In this case, first you need to reverse the itc taken alongwith interest and after paying 5 percent gst under rcm take itc. otherwise on departmental enquiry penalty invokes.

harshal

student

38 Points Posted on 25 June 2021

Thanks for the resolution..
if i am reversing the itc and paying along with interest, itc in any case cant be avail as cab rent is under blocked credit as per my understanding..