ITC availed twice on single supply of security sercice, Goods and Services Tax - GST

[KALLESHAMURTHY MURTHY]

Dear Sirs,

ABC LLP used security services from a registered person. The supplier collected tax under FCM. ABC LLP availed ITC on the invoice issued by the supplier. The Department officer observed the non-payment of tax under RCM as per Notification 29/2018 dated 31-03-2018. ABC LLP discharged the tax under RCM and availed ITC which served as availed ITC twice for a single supply but there was a double payment of tax. Is ABC LLP correct in availing of ITC twice on a single supply and what about double payment of tax?

Posts / Replies

[KASTURI SETHI]

Sh.Kalleshamurthy Murthy Ji,

                                          ITC cannot be availed twice on the same invoice. File refund claim on account of excess payment under Section 54 (8)(e) of CGST Act.

[KALLESHAMURTHY MURTHY]

Respected Kasturi Sethi ji, 

Sir,

I have expressed the same opinion for an issue in Empathic under LinkedIn today 11-10-2024.  But they have raised another point that as under.

" sir, the advisory is in connection with double payments made with a conservative approach to avoid litigation. Now if a taxpayer takes a view that ITC of such payment can’t be made and it is entitled to refund only, then this advisory is not applicable at the first place..

Next, coming to your point of refund, if you are of view that duplicate GST amount can only be claimed as refund then it is the first payment made under forward charge which can be claimed as refund, and in no case the subsequent payment made under RCM." 

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