A is dealer of Reliance running petrol pump, holding GSTIN. Reliance is issuing voucher for Diesel/Petrol. Goods are transported by sister concern as GTA service. RCM Tax is about 200000/- per month @5%. A has negligible turnover of Oil/lubricant.
Whether RCM paid is refundable or tax cr. is not eligible u/s. 17, being dealing in out og GST goods and RCM is related to that ?
Referring to section 17(2) of CGST Act
(2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies.
You need to partially bifurcate the input tax credit between outward supply of exempt and taxable supplies.
If entire credit is for exempt supply then you cannot avail benefits of input tax credit.
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