ITC of Service Tax paid under RCM

[Ashwarya Agarwal]

I am a steel manufacturer. I have received transportation service from GTA in the month of June.

As per the erstwhile Excise and Service Tax law, I had deposited applicable service tax liability for the month of June 2017 on 06.07.2017. However I was not eligible to claim cenvat of that service tax amount against my excise liability for the month of June 2017 because of the provisions of Cenvat Credit Rules.

Now GST law is applicable w.e.f 01.07.2017. How can I claim cenvat / ITC of the above mentioned service tax paid in July?? Is there any provision in GST law??

AI Summary

Steel Manufacturer Faces ITC Denial for RCM Service Tax Post-GST Transition; Clarification from GST Council Needed A steel manufacturer sought advice on claiming input tax credit (ITC) for service tax paid under reverse charge mechanism (RCM) for transportation services in June 2017, after the transition to GST on July 1, 2017. Responses indicated that ITC for such service tax is generally not admissible under GST if it wasn't under Cenvat Credit Rules. Suggestions included filing an ST-2 return for April to June 2017 by August 15, 2017, to potentially credit the payment. However, it was noted that transitional input tax credits like these are often lost, and further clarification from the GST Council may be needed.