Question ID : 38090

Reversal of ITC under rule 42 wrt tax paid on reverse charge

A private Limited paid GST under reverse charge wrt import of service from its parent company. The total GST paid on import of service is Rs 1,00,000 and subsequently claimed ITC. As per rule 42, the ITC is to be reversed wrt exempt suppy. As per section 17(3), the GST paid on reverse charge is exempt supply. So, does it mean the entire GST paid of Rs 1,00,00 on this transaction we have to reverse it. Kindly confirm the same. Thanx in advance

posted by CA Neha Gupta on Apr 12 2019 12:00AM