ITC ON TRAVELLING AGENT

[SURYAKANT MITHBAVKAR]

We are regular basis using services from travelling agent like ticket booking for our sales person visit, Visa, etc.

If the agent is not register under GST we have to use RCM to discharge liability of GST.

Can we avail ITC credit on the RCM .

If agent is registered also can we avail ITC on GST paid by him.

[KASTURI SETHI]

Under RCM, GST has to be paid in cash and thereafter ITC can be availed on the strength of E-Challan. If the agent is registered, there is no dispute.

AI Summary

Input tax credit on reverse charge available after cash payment and e challan; registered travelling agent's GST also creditable. Services from a travelling agent supplied by an unregistered agent attract the reverse charge mechanism: the recipient must pay GST in cash under RCM and may claim input tax credit thereafter on the strength of the e-challan. If the travelling agent is registered, the recipient may avail input tax credit of the GST charged by the agent in the ordinary manner.