ITC on AMC

[kaushal jaishwal]

Dear sir/mam

i have received a bill of AMC for the year( F.Y.18-19) and i already paid amount of this bill but the service will be provided to whole year.

now my question is , can i claim the whole of the GST as credit or i have to proportionate the GST credit to whole of the year on monthly basis.

AI Summary

Full ITC Claim Allowed on Upfront AMC Payment for 2018-2019; Section 16(2) CGST Act Restriction Not Applicable A query was raised regarding the eligibility to claim the entire GST as Input Tax Credit (ITC) on an Annual Maintenance Contract (AMC) paid upfront for the fiscal year 2018-2019, as the service is provided throughout the year. Two responses were given. The first response clarified that the restriction in Section 16(2) of the CGST Act, 2017, concerning goods received in installments, does not apply to services like AMC. Therefore, full ITC can be claimed. The second response concurred, affirming that ITC on AMC transactions can be availed in full.