ITC on tax paid in reverse charge

[Narendra Soni]

Dear expert

Kindly confirm whether ITC is available on GST paid by recipient in reverse charge.

[Govind Gupta]

Tax paid on reverse charge basis will be available for input tax credit if such goods and/or services are used, or will be used, for business. The service recepient (i.e., who pays reverse tax) can avail input tax credit.

AI Summary

Input Tax Credit Available for GST Paid Under Reverse Charge if Used for Business Purposes A query was raised about the availability of Input Tax Credit (ITC) on Goods and Services Tax (GST) paid under the reverse charge mechanism. The response clarified that ITC is available for tax paid on a reverse charge basis, provided the goods or services are used for business purposes. The recipient who pays the reverse charge tax can claim this credit.