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Is itc available on gta in rcm to service receipient

bobbiligangannnaidu (M.Com) (40 Points)

13 July 2017

Hi,

Is Input Tax Credit avilable on GTA in the form reverse charge mechanism? to service receiver.

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9 Replies

CA. MITHUN KHATRY (CA IN PRACTICE) (370 Points)
Replied 14 July 2017

Yes available to normal business entiry

No ITC on inward supplies is available TO GTA

However ITC is AVAILABLE for Services received from GTA.

for more information on gst read articles by CA Mithun Khatry at www.gstbible.com/blog

1 Like

HEMANT KASAL (ASSISTANT MANAGER ) (14 Points)
Replied 14 July 2017

thanks

Mohit bhutada (article) (40 Points)
Replied 14 July 2017

A company is taking services from one transporter , whose office is situated in another state . Company is paying freight and liable under RCM . What should be the head , whether IGST or CGST/SGST. Please give your opinion

bobbiligangannnaidu (M.Com) (40 Points)
Replied 14 July 2017

thanks for your valuable answer Mithun JI

Momin Ali (156 Points)
Replied 15 July 2017

SIR plz clarify on GTA (as per govt. list provided it's mention GTA 5% NO ITC credit) as per many gst expert it's means GTA provider are not allowed to take ITC credit not service receiver and service receiver will pay the 5% rcm and credit avail. it's means in each case as per govt. list credit word mention for service provider instead of service receiver.

Momin Ali (156 Points)
Replied 15 July 2017

above case addition GTA always give the service but not receiving any service so I don't think so as per list 5% no itc is for service provider. as per my opinion this no itc credit is for service receiver instead of service provider. not only this case in each case.

Momin Ali (156 Points)
Replied 15 July 2017

plz read the section 9(3)

bobbiligangannnaidu (M.Com) (40 Points)
Replied 05 August 2017

Dear Momin, yes, I am also think like that here RCM means Service receiver only pay the tax in this case why service provider will get credit I don't know. No ITC is applicable for service receiver I feel. any body please clarify me and Mr.ali doubt.