GST credit on GTA services paid under RCM

[Ashwin Garg]

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

AI Summary

Input tax credit on RCM payments: credit available after cash payment in same month before return filing.
Input tax credit for GTA services under the reverse charge mechanism is claimable only after the recipient pays the RCM GST in cash; once paid the cash ledger increases and the ITC may be taken in the same month and adjusted against output tax in the periodic return.