TMI BlogGST credit on GTA services paid under RCMX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, GST on GTA services is payable in cash under RCM on or before 20th of next month. Whether such GST credit is allowed on payment basis (i.e next month) or credit can be taken in same month (i.e accrual basis). May kindly reply with relevant section, rules, circular, clarification etc - Reply By KASTURI SETHI - The Reply = Credit can be taken only after making payment of GST in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash in the same month. It means ITC is to be taken during the month in which tax paid in cash. - Reply By SHIVKUMAR SHARMA - The Reply = Please refer Issue Id: - 113373 - Reply By Ganeshan Kalyani - The Reply = Pay tax on say, 17th , the cash ledger balance will be increased. Make payment for other liability on say, 18th. The liability to the extent of RCM paid in cash will be set off and b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alance only will need to be paid. Hence, the credit is available on RCM in the same month. - Reply By KASTURI SETHI - The Reply = Right example given by Sh.Ganeshan Kalyani Ji. - Reply By Ganeshan Kalyani - The Reply = Thanks you Sri Kasturi Sir. - Reply By Ramaswamy S - The Reply = Show the tax as liability (paid in cash on 20th) and also take the credit of the tax in the same month (befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e filiing return and adjust against regular output tax). Pay the balance + rcm in cash Eg Output Tax on Forward Supplies say - 1,00, 000 Tax on RCM , say - 10,000 Total Tax payable - 1,10 000/- ITC regular - 50000 ITC RCM -10 000 60,000/ Net Tax payable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50,000 Break up Regular -1,00,000-60,000=40,000 RCM 10,000 Total Tax payable 50,000 Regards S.Ramaswamy - Reply By KASTURI SETHI - The Reply = Very much clear illustration by Sh.S. Ramaswamy. - Reply By Ganeshan Kalyani - The Reply = Nicely explaines. It will reduce the working capital burden. - GST credit on GTA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services paid under RCM - Query Started By: - Ashwin Garg Dated:- 15-8-2018 Goods and Services Tax - GST - Got 8 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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