https://www.taxtmi.com/forum/issue?id=5355 Once an eligible Cenvat credit on input services is lawfully availed, it may be utilised to discharge the service tax liability on any output services rendered; however, where an output service liability is mandatorily required to be paid in cash through the prescribed mechanism, that component must be discharged by cash (for example through GAR-7) and cannot be adjusted by credit. Taxpayers must identify such cash-payment obligations and otherwise apply Cenvat credit in returns and ER-1. en-us Tue, 26 Feb 2013 19:45:49 +0530 Thu, 23 Jan 2025 15:57:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=5355 Once an eligible Cenvat credit on input services is lawfully availed, it may be utilised to discharge the service tax liability on any output services rendered; however, where an output service liability is mandatorily required to be paid in cash through the prescribed mechanism, that component must be discharged by cash (for example through GAR-7) and cannot be adjusted by credit. Taxpayers must identify such cash-payment obligations and otherwise apply Cenvat credit in returns and ER-1. Discussion-Forum Service Tax Tue, 26 Feb 2013 19:45:49 +0530 https://www.taxtmi.com/forum/issue?id=5355