Input tax credit availement on rcm paid for gta is eligible

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2018 Dear Experts,

We pay the RCM on GTA @5%, where as In Invoices we are charging 18% based on SAC code 996711 as outward freight. so far from July-2017 to till date we have not claimed Input credit for the RCM paid on GTA.
But now auditors are telling to claim input credit since we are not service provider or GTA. is it valid ???.

your valuable feedback is awaited.

CA Anita Bhadra

CA Anita Bhadra (Expert)
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29 August 2018 Your Auditor is right .
As per Notification No 5/2017-Central Tax, - GST payable at 5% on GTA service will be payable by the service receiver under RCM and the input credit will also be taken by the service receiver..

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Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2018 Dear madam,

The notification of 5/2017 CentralGovernment hereby specifies the persons who are only engaged in making
supplies of taxable goods or services or both, the total tax on which is liable to
be paid on reverse charge basis by the recipient of such goods or services or
both under sub-section (3) of section 9 of the said Act as the category of persons which means both are under same business??