GST AND CUSTOM LAW | UNIT 3 | SEM 6 | BCOM | DU/SOL/REGULAR/NCWEB

Welcome to Idea Infusion– Your Learning Partner for Commerce and Taxation Subjects!

In this in-depth video, we cover Unit 3: Input Tax Credit (ITC) and Reverse Charge Mechanism (RCM), a fundamental concept under Goods and Services Tax (GST) in India. This topic is extremely important for students of B.Com, M.Com, CA, CS, CMA, MBA, and other competitive or professional exams.

This video is structured in a simple and easy-to-understand format to help you grasp both theory and practical implications of Input Tax Credit and Reverse Charge with real-life examples and exam-relevant insights.


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Topics Covered in This Video:

1. What is Input Tax Credit (ITC)?

Meaning and significance of ITC under GST

How ITC helps avoid cascading effect of taxes



2. Eligible Input Tax Credit

Conditions to claim ITC

Inputs, input services, and capital goods eligible for ITC

Documents required to claim ITC



3. Ineligible Input Tax Credit

List of goods/services where ITC is not allowed under Section 17(5) of CGST Act

Explanation of personal use, motor vehicles, outdoor catering, membership clubs, etc.

Practical examples of disallowed credits



4. Apportionment of Credit and Blocked Credits

Situations where ITC needs to be apportioned (e.g., business and personal use)

Rule 42 and Rule 43 under GST

Definition and examples of blocked credits



5. Tax Credit in Respect of Capital Goods

Meaning of capital goods under GST

ITC availability and treatment in case of capital goods used in taxable supplies

Special rules for sale of capital goods



6. Availability of ITC in Special Circumstances

When a person becomes liable for registration

Voluntary registration

Change in constitution of business

Composition scheme to regular scheme and vice versa

Transfer of business



7. Reverse Charge Mechanism (RCM)

What is RCM and how it works under GST

Cases where RCM is applicable (e.g., unregistered to registered dealers, specified services like legal, security, etc.)

Time of supply and ITC availability under RCM

GST payment process under RCM





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Why Watch This Video?

Clear and complete explanation of complex GST topics

Helps in understanding theoretical as well as application-based concepts

Real examples and exam-oriented tips

Useful for college exams, competitive exams, and practical knowledge for professionals



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