Input Tax Credit utilization - Reg

[KIRAN KUMAR]

Dear Sir,

Can we adjust the Revers charge input tax credit of previous months for Revers charge payment to current month

Thanks & Regards,

Kiran Kumar

AI Summary

Clarification on GST: Reverse charge payments must be settled in cash; input tax credit cannot be used. A participant inquired about utilizing input tax credit for reverse charge payments under GST. Multiple responders clarified that reverse charge liability must be settled in cash, and input tax credit from the electronic credit ledger cannot be used for this purpose. The discussion also touched on eligibility for input tax credit as per Sections 16 to 21 of the CGST Act. Additionally, a query was raised about GST compliance when selling vehicles previously purchased under VAT without claiming input tax credit. It was noted that specific GST rates apply if the vehicles were bought before July 1, 2017, without availing input tax credit.