Dear Experts,
GST on GTA services is payable in cash under RCM on or before 20th of next month.
Whether such GST credit is allowed on payment basis (i.e next month) or credit can be taken in same month (i.e accrual basis).
May kindly reply with relevant section, rules, circular, clarification etc
GST Credit for GTA Services: Claim ITC in Payment Month via RCM, Optimize Cash Flow Before Filing Returns A discussion on the Goods and Services Tax (GST) credit for Goods Transport Agency (GTA) services paid under the Reverse Charge Mechanism (RCM) debated whether the credit can be taken on a payment or accrual basis. Participants agreed that the Input Tax Credit (ITC) can be claimed in the same month the GST is paid in cash. Various examples were provided to illustrate the process, emphasizing that the credit should be utilized against the regular output tax before filing returns, thereby optimizing cash flow and reducing working capital burdens. (AI Summary)
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