Reversal of ITC on account of supplies made on which GST to be paid by recipient under RCM

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....eversal of ITC on account of supplies made on which GST to be paid by recipient under RCM<br> Query (Issue) Started By: - Rajesh Kumar Dated:- 15-4-2022 Last Reply Date:- 25-4-2022 Goods and Services Tax - GST<br>Got 9 Replies<br>GST<br>Sir, a taxpayer engaged in supplies of service some of which are taxable under forward change but some are taxable under RCM where tax to be paid by recipients. s....

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....ir I want to know that the amount of supplies made on which tax to be paid by the recipients under RCM , is he liable to reverse the ITC under Section 17 read with Rule 42. Reply By KASTURI SETHI: The Reply: In thiis scenario, no reversal of ITC is required against the tax paid under RCM. Reply By KASTURI SETHI: The Reply: With reference to my reply at serial no.1 dated 16.4.22, please read as....

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.... under:- &quot;Reversal is required.&quot; Reply By KASTURI SETHI: The Reply: For the provider of service, it is exempt supply. Reply By KASTURI SETHI: The Reply: Under RCM, service recipient is deemed service provider. Service Provider is actual service provider. Turnover is always accounted towards the Service Provider&#39;s turnover. In this scenario, Service Provider (supplier) has not p....

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....aid tax on his/her turnover (output value). Hence proportionate reversal of ITC is justified. Reply By Amit Agrawal: The Reply: I agree with views of Shri Kasturi Sethi Ji! Reply By Ganeshan Kalyani: The Reply: no tax on outward supply , no input tax credit allowed. Reply By SARTHAK MITTAL: The Reply: ITC is required to be reversed as per Section 17(3) read with Rule 42/43 Reply By Ravines....

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....h Sinha: The Reply: Reversal under Section 17 read with rule 42 is required only if exempted outward supply is made by tax payer . Otherwise not Reply By KASTURI SETHI: The Reply: Under RCM, outward supply is exempt for the supplier/provider of service.<br> Discussion Forum - Knowledge Sharing ....