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

[Ganeshan Kalyani]

No, reverse charge liability must be paid in cash. The tax paid under reverse charge can be utilised to pay tax on the outward supply.

[Rajagopalan Ranganathan]

Sir,

Tax under reverse charge is to be paid in cash. ITC available in electronic credit ledger cannot be utilized for this purpose.

[CSSANJAY MALHOTRA]

Agree with all experts.

[KIRAN KUMAR]

Thanks for your valuable replies

Requesting you provide the Input tax credit eligible services list and non eligible services list under Revers charge Mechanism under GST

Thanks & Regards,

Kiran Kumar

[Nash Industries I Pvt Ltd]

the tax under RCM is to be paid in cash and the credit can be availed in the same month at the time of filing the GSTR-3B.

Also clarified by CBEC in its FAQ.

Regards

S.Ramaswamy

[Ganeshan Kalyani]

Refer Section 16 to 21 of CGST for eligibility of input tax credit and restrictions on the credit.

[KIRAN KUMAR]

Dear Sir,

Thanks for your valuable replies and kindly go through the following issue and requesting you give your valuable replies

We purchased 3 Bolero's 3 years back under VAT, we have not taken any credit because my final product exempted from tat Now we are selling the bolero's under GST, Requesting you to provide the GST Compliance

Thanks & Regards,

Kiran Kumar

[Rajagopalan Ranganathan]

Sir'

As per Sl. No. 2 of Notification No. 37/2017-Central Tax (Rate) dated 13.10.2017motor vehicle falling under Chapter 87 when supplied by a registered person is chargeable to CGST at 65% of central tax applicable otherwise on such goods under Notification No. 1/2017-Central Tax (Rate) dated, 28th June, 2017 provided "such supplier had purchased the Motor Vehicle prior to 1st July, 2017 and has not availed input tax credit of central excise duty, Value Added Tax or any other taxes paid on such vehicles."

AI Summary

Reverse charge credit cannot discharge reverse charges; liability must be paid in cash and credit used for outward tax.
Reverse charge liabilities under GST must be paid in cash and the electronic input tax credit ledger cannot be used to discharge reverse charge tax; tax paid under reverse charge may be utilised to pay tax on outward supplies. ITC eligibility and restrictions are governed by Sections 16-21 of CGST and ITC, where available, may be availed in the month of filing GSTR-3B. Transitional provision: motor vehicles purchased before GST commencement on which no prior indirect tax credit was claimed attract a specified concessional central tax rate on subsequent supplies.