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 on special vehicle number fee, RCM confusion and section 17(5) block for passenger vehicles (5) A taxpayer paid Rs. 1.50 lakh to the State Transport Department for a special vehicle registration number and self-assessed GST under reverse charge, then asked if input tax credit (ITC) is available. Respondents clarify that payment for a special or fancy number or vehicle registration is generally a statutory levy, not consideration for a service, and thus may not attract RCM; any GST paid under RCM may be adjustable against other RCM liabilities. If it is treated as a taxable service, ITC is blocked for passenger vehicles with seating capacity up to 13 persons under section 17(5), but allowed for goods vehicles used in business.