Reversal of ITC on account of supplies made on which GST to be paid by recipient under RCM

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..... Reversal of ITC on account of supplies made on which GST to be paid by recipient under RCM
Query (Issue) Started By: - Rajesh Kumar Dated:- 15-4-2022 Last Reply Date:- 25-4-2022 Goods and Services Tax - GST
Got 9 Replies
GST
Sir, a taxpayer engaged in supplies of service some of which are taxable under forward change but some are taxable under RCM where tax to be paid by recipients. .....

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..... sir I want to know that the amount of supplies made on which tax to be paid by the recipients under RCM , is he liable to reverse the ITC under Section 17 read with Rule 42. Reply By KASTURI SETHI: The Reply: In thiis scenario, no reversal of ITC is required against the tax paid under RCM. Reply By KASTURI SETHI: The Reply: With reference to my reply at serial no.1 dated 16.4.22, please read a .....

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..... s under:- "Reversal is required." Reply By KASTURI SETHI: The Reply: For the provider of service, it is exempt supply. Reply By KASTURI SETHI: The Reply: Under RCM, service recipient is deemed service provider. Service Provider is actual service provider. Turnover is always accounted towards the Service Provider's turnover. In this scenario, Service Provider (supplier) has not .....

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..... paid tax on his/her turnover (output value). Hence proportionate reversal of ITC is justified. Reply By Amit Agrawal: The Reply: I agree with views of Shri Kasturi Sethi Ji! Reply By Ganeshan Kalyani: The Reply: no tax on outward supply , no input tax credit allowed. Reply By SARTHAK MITTAL: The Reply: ITC is required to be reversed as per Section 17(3) read with Rule 42/43 Reply By Ravine .....

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..... sh Sinha: The Reply: Reversal under Section 17 read with rule 42 is required only if exempted outward supply is made by tax payer . Otherwise not Reply By KASTURI SETHI: The Reply: Under RCM, outward supply is exempt for the supplier/provider of service.
Discussion Forum - Knowledge Sharing .....

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