RCM INPUT QUERRY ON PAYMENT OT GOVERNMENT

[Dheeraj Kaushik]

I have made payment of Rs. 1.50 lac towards a special number of RC to the state government at the time of purchase of a vehicle used in my business.

 I have paid RCM against said payment of Rs. 1.50 lac as per notification 13/2017 as services availed form state government.

Now my query is whether I can avail   input tax credit (ITC) GST paid under the reverse charge mechanism (RCM) on services availed from the central or state government

if I am eligible to avail input then under what notification if any I can avail  input.

AI Summary

ITC allowed on RCM GST for special vehicle number fees, Section 16(1) overrides Section 17(5)(a) bar A business purchaser of a vehicle paid Rs. 1.50 lakh to the state government for a special registration number and discharged GST under reverse charge, then asked if input tax credit (ITC) on such RCM tax is allowed and under which notification. The respondent clarified that Section 17(5)(a) CGST Act restrictions on motor vehicles differ from services obtained from the Government Transport Department. When the vehicle is used in the course or furtherance of business, ITC of GST paid under RCM on such governmental services is generally allowed under Section 16(1), read with the applicable RCM notification, and Section 17(5)(a) should not bar ITC in this context.