RCM on Rent for Composite Dealer

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....CM on Rent for Composite Dealer<br> Query (Issue) Started By: - Praveen VR Dated:- 25-11-2024 Last Reply Date:- 27-11-2024 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>We have Clients who are composite dealers, hence cannot claim Input Tax Credit. With the RCM on Rent rule being incorporated, Should we still pay this (RCM on rent) without having any chance of adjustment against outward ....

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....tax liability payment. If we pay this RCM payment, is there any chance of recovery or do we have an exemption for Composite dealers from paying RCM on rent Reply By Sadanand Bulbule: The Reply: Dear querist The definition of &quot; Input tax&quot; under Section 2[62] [b], reproduced below, also includes tax payable under RCM. (62) "input tax" in relation to a registered person, means the centr....

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....al tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes- (a) XXXX (b) the tax payable under the provisions of sub-sections (3) and (4) of section 9; In view of such inclusive definition, the composition dealers opting to pay tax under Section 10 are not entitled either to recover it or exempt from paying rent under RCM....

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..... In fact, rent paid under RCM becomes the cost of establishment.. Reply By KASTURI SETHI: The Reply: Such availment of ITC by a composition dealer is clearly hit by Section 10 (4) of CGST Act. Pl. note the words, &quot; __________nor shall he be entitled to any credit of input tax.&quot; Emphasis is laid on the words, &#39;shall&#39; & &#39;any&#39;. The word, &#39;shall&#39; stands for mandato....

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....ry nature. I fully support the views of Sh. Sadanand Bulbule, Sir Reply By Shilpi Jain: The Reply: No exemption. Tax has to be paid under RCM and no credit would be eligible.<br> Discussion Forum - Knowledge Sharing ....