Gta and rcm - input credit

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This query is : Resolved

Govind JK Kolappan (Querist)

31 May 2017 Dear experts

when a service receiver for goods transport, pays GST on Reverse charge - will he be eligible to take such RCM as input credit

Assume his out put is taxable under GST

Thank you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

31 May 2017 Yes input credit is available on such RCM payment.

Govind JK Kolappan

Govind JK Kolappan (Querist)

02 June 2017 Thank you

my doubt is because in the schedule of Service GST rates they have mentioned in sl no 3 Service of Goods transport agency (GTA ) in relation to transportation of goods would be 5% GST rate - NO ITC.

Also this service is covered under RCM
when they have mentioned "NO ITC" - whether the GST is paid by service provider or by service receiver under RCM, in both cases it is not eligible for input credit

i think my understanding is incorrect based on your comment, but still like your advice

Thank you

JKG

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 June 2017 No ITC is for the service provider.

Govind JK Kolappan

Govind JK Kolappan (Querist)

02 June 2017 Thank you Mr.Seetharaman

I stand corrected

with kind regards
Govindaraj
9940634547
Vestas
gokol@vestas.com

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