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.

[Alkesh Jani]

Sir,

The first proviso to sub-section 2 of Section 16 of CGST Act,2017, restricts registered person to avail ITC, if goods are received in lots or installment. In your case, AMC is kind of contract agreed for providing services for the period. As it is services, the restriction of aforesaid proviso is not applicable. So in my point of view, you can avail full ITC.

Our experts may correct me if mistaken.

Thanks

[YAGAY andSUN]

In our view also you can avail the ITC on AMC transactions.

AI Summary

Input Tax Credit on AMC can be claimed in full upfront because instalment restriction applies only to goods. The instalment-receipt restriction on claiming ITC applies to goods received in lots or instalments and not to services; an AMC is a service contract, so a registered person may avail the full ITC on the GST charged for the AMC rather than proportionately apportioning the credit monthly.