GST Input Tax Credit - Please Clarify

[Ravi Chandra]

My Organization is Distrcit Central Cooperative Bank, We Pay Service Tax(now GST) on bill submitted by manpower agency who supplies manpower to our organization(Ex: 100000 is bill and GST 18% = 18000/- per month). And we collect Service tax (now GST) from customers for issuing DDs/Cheques and other services etc., and total collected service tax(or GST) will be around 20000/- per month. And total business area is within district only. In this case can we claim input tax credit if yes how much it is. And Manpower agency(which gives services to us) is belongs to our district only.

AI Summary

Bank's GST Input Tax Credit Dilemma for Manpower Services Amidst Reverse Charge Mechanism Clarification A district central cooperative bank inquires about claiming GST input tax credit for service tax paid to a local manpower agency and collected from customers for services like issuing DDs and cheques. The bank pays GST on manpower services and collects it from customers, with both activities confined to the district. A respondent clarifies that if the bank is a corporate entity, it must pay GST under the reverse charge mechanism (RCM) and can claim input tax credit after depositing GST in cash. However, it is confirmed that manpower services are not covered under RCM as per the GST Council's list.