How to show Cenvat credit in St-3

[Guest]

The input tax can be cliamed only 20% of output service so in the ST-3 we should show in availed cenvat credit , full of 100% and den utilise 20% of output tax or in the column availed we should show 20% elegible only. Thx

[Surender Gupta]

The cap of 20% is on utilization of Cenvat Credit and not on availing Cenvat Credit and therefore, you should show the 100% amount in the column credit availed.

AI Summary

Cenvat credit utilization cap applies to use, not to reporting; show full availed credit while limiting utilization. The restriction operates on utilization of Cenvat credit, not on its availment; consequently the ST-3 should show the full amount of credit availed, while only the permissible portion of that credit is actually utilized against output service tax liabilities.