ITC availed twice on single supply of security sercice

[KALLESHAMURTHY MURTHY K.N.]

 

Dear Sirs,

ABC LLP used security services from a registered person. The supplier collected tax under FCM. ABC LLP availed ITC on the invoice issued by the supplier. The Department officer observed the non-payment of tax under RCM as per Notification 29/2018 dated 31-03-2018. ABC LLP discharged the tax under RCM and availed ITC which served as availed ITC twice for a single supply but there was a double payment of tax. Is ABC LLP correct in availing of ITC twice on a single supply and what about double payment of tax?

AI Summary

Duplicate input tax credit on same supply prohibited; excess tax should be reclaimed by refund rather than re availed as credit.
ITC cannot be availed twice on the same supply; excess tax payment should be recovered by filing a refund claim under the statutory refund procedure. The relevant date for refund computation is the payment made under forward charge where excess was paid. A taxpayer cannot unilaterally switch between forward charge and reverse charge bases to justify duplicate crediting. If tax collected by the supplier was without authority, the recipient may pursue refund rather than accept a demand under reverse charge.