TMI BlogGTA Services and ITCX X X X Extracts X X X X X X X X Extracts X X X X ..... The Goods Transport Agency (GTA) had charged 5% GST in the invoice against transportation charges to XYZ Ltd. XYZ had claimed input tax credit against this. 1) Whether XYZ is eligible to claim such ITC? 2) If not, what is the correct procedure? I my view, XYZ can claim ITC only when the GTA is charging 12% GST. But no reverse charge to XYZ if GTA charging 5% GST. Views of the experts please. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By Shilpi Jain - The Reply = RCM would be applicable for XYZ, since the GTA would satisfy the condition in the RCM notification of being a person who has not paid tax @ 12%. So suggested that XYZ recovers the 5% tax from GTA and pays to department (along with interest if late paid). If this is not possible, XYZ would still be eligible for the GST paid to supplier as it falls under the def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ITC under GST. - Reply By KASTURI SETHI - The Reply = I support the views of Madam Shilpi Jain. - Reply By Ganeshan Kalyani - The Reply = Sir, recipient of GTA service is eligible to take ITC in both cases i.e. GTA charging 5% or 12% GST on invoice. - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Kalyani Ji, Your understanding, interpretation, analysis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and viewpoint are absolutely correct. - Reply By Shilpi Jain - The Reply = Agreed. Somehow the trade and industry seems to have a doubt whether they will be eligible for credit as recepient. The restriction of credit is only for the service provider GTA if the recipient is paying GST @5% under RCM. - GTA Services and ITC - Query Started By: - Kaustubh Karandikar Dated:- 1-10-2021 Goods and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Services Tax - GST - Got 5 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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