Ans:
A supplier cannot take ITC- Input Tax Credit of the GST paid on services/goods if used to make supplies where the recipient is liable for RCM tax. But, a recipient of such services/goods can avail ITC for the amounts paid under the reverse charge mechanism.
Here’s how to raise the claim ITC and know GST on reverse charge tax liability using Tally.
Enter the Tally gateway and click on ‘Display’ selecting ‘Statutory Reports’ and then the GST tab and the GSTR-3B tab under it.
Click ‘Enter’ on the tab for Reverse Charge of Inward Supplies.
Raise the amount of the tax liability here and Click J: Stat Adjustment.
Credit and Debit the tax ledgers and hit the ‘Save’ button.