Sir, we are trading exempted goods and taxable goods, in case of common cenvat credit we are following Rule 42 and Rule 43 of the GST rules and reversing cenvat credit attributable to exempted Sales. Recently we paid the GST on transport charges under RCM Basis. My query is that whether I have to take GST paid Rcm as input GST or I have applied the Rule 42 and Rule 43 for RCM GST also Reply— Yes, input of tax paid under reverse charge is also required to be reversed attributable to exempted supplies. Query- Please quote the relevation section for record purpose .

Reply—There is no separate section or rule for reversal of ITC where tax paid under reverse charge. Rule 42 and 43 concerned with input tax credit. Section 2(63) of CGST Act, deals with “input tax credit” means the credit of input tax. Input tax includes paid under reverse charges.As pe section 2(62) of CGST Act, “input tax” in relation to a registered person, means the central 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) the integrated goods and services tax charged on import of goods;

(b) the tax payable under the provisions of sub-sections (3) and (4) of section 9;

(c) the tax payable under the provisions of sub-sections (3) and (4) of section 5 of the Integrated Goods and Services Tax Act;

(d) the tax payable under the provisions of sub-sections (3) and (4) of section 9 of the respective State Goods and Services Tax Act; or

(e) the tax payable under the provisions of sub-sections (3) and (4) of section 7 of the Union Territory Goods and Services Tax Act, but does not include the tax paid under the composition levy;