Input Credit under reverse charge where final output is exempt

[rakesh rohilla]

Dear Experts,

I have made payments through reverse charge and paid the entire amount through cash ledger in the month of july 2017. I am providing exempt service i.e. transportation of passenger as well as taxable service. Is reverse charge paid by me can be setoff against my output tax liability. I am a transport company with a authorised service center of TATA. both are running in only one company name. please help me regarding this.

AI Summary

Transport Firm Queries Setting Off Reverse Charge Payments Against Output Tax Under ITC Rules for GST Services A transport company providing both exempt and taxable services inquired about the eligibility to set off reverse charge payments against output tax liability, having paid through the cash ledger. The company sought clarification on input credit under the Goods and Services Tax (GST) for services like passenger transportation. Experts advised that proportionate credit must be reversed according to Input Tax Credit (ITC) rules, with consensus among responders that only proportionate credit is eligible.