GST Input from GTA

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This query is : Resolved

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This discussion clarifies GST input tax credit (ITC) for services from Goods Transport Agencies (GTA). If the GTA charges GST at 5%, you must pay GST under the Reverse Charge Mechanism (RCM) at the same rate and can then claim ITC on that amount. If the GTA charges GST at 6%, RCM is not applicable.

Deepak Rawat

Deepak Rawat (Querist)
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28 November 2021 Dear Experts,
I have received Tax Invoice from TCI Freight for Rs. 25000 plus 5% GST. Can I avail GST Input on the same ?
Or I have to deposit Tax as per Reverse Charge ? Please Guide

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 November 2021 You have to deposit GST under RCM and avail ITC.

Udaya Chandran

Udaya Chandran (Expert)
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29 November 2021 If the GTA charges GST @ 6%, RCM is not applicable. If the same is lesser than 6%, you need to pay GST under RCM @5%. You can avail ITC on the GST charged @5% by the GTA and pay RCM @5%.

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