As regards the recipient who pays tax on reverse charge basis, tax so paid would be available as credit subject to section 17. As regards the supplier whose tax is paid by the recipient, value of such supply will be treated as ‘exempt supply’ while applying section 17(2) of the CGST Act, 2017 on all the credits availed.
(ICAI FAQ PUBLICATION 06-09-2017 REVERSE CHARGE : FAQ NO.24)