The CENVAT credit in respect of Input Service shall be allowed,

on or after the day on which the Invoice, Bill or, as the case may be, Challan referred to in rule 9 is received.


Credit to be availed within one year of the date of Invoice


Different Cases


Who Pays Service Tax

When is CENVAT available to

Service Receiver

Normal Charge

Service Provider charges Service Tax from Service Receiver on Invoice

When Invoice is received

Reverse Charge

Service Receiver pays Service Tax directly to Government

When Service Tax is actually paid by GAR 7 challan by

Service Receiver

Partial Reverse Charge

Partial Amount is paid by service provider


Partial amount by service receiver

Service Provider Portion

When Invoice is received


Service Receiver Portion

When Service tax is actually paid by GAR 7 challan by

Service Receiver


(New Amendment w.e.f 1.4.2015)






Effect of Amendment

Before Amendment (before 1.4.2015)

After Amendment (From 1.4.2015 onwards)

Credit available in case of partial reverse charge on

Payment of Party


Payment of challan



Credit available in case service tax paid by receiver in case of  partial reverse charge on

Payment of challan only




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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.