TMI BlogReversal of ITC on account of supplies made on which GST to be paid by recipient under RCMX X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 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 scenari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o, 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 as 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 - T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 Ravinesh 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = Under RCM, outward supply is exempt for the supplier/provider of service. - Reversal of ITC on account of supplies made on which GST to be paid by recipient under RCM - Query Started By: - Rajesh Kumar Dated:- 15-4-2022 Goods and Services Tax - GST - Got 9 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia - 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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