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

Special vehicle registration number payment: ITC hinges on whether the charge is statutory or a taxable service and vehicle use.
Whether GST paid under the reverse charge mechanism on a special registration number can be claimed as input tax credit depends on whether the payment is a statutory charge (not subject to RCM) or a consideration for services; if treated as RCM-taxable service, ITC is blocked under Section 17(5) for passenger vehicles with seating up to thirteen, but allowed where the vehicle is used for carriage of goods. Exemptions for registration services and adjustment against other RCM liabilities were also noted.