ITC (INPUT TAX CREDIT)

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Leo A/cs (Querist)
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31 October 2019 We have received bill from one transporter who has charged GST @ 5% ,can we take Input over this bill.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 October 2019 No, pay GST under RCM and claim ITC

CA PARTH SHAH

CA PARTH SHAH (Expert)
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01 November 2019 First confirm whether transporter have actually paid GST@5%. If yes, then you can directly claim ITC. Otherwise GST has to be paid on RCM basis and then we can claim credit. You can inform the transporter that they will have to charge GST on forward basis at 12% instead of 5%

Virendra Chaturvedi

Virendra Chaturvedi (Expert)
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15 November 2019 As per Notification 13/2017 CT (R) GTA is services are Under RCM & As per Notification 22/2017 CT (R) , GTA can charge 12% On FC , & can avail ITC on its Inward Supply . Hence if GTA is Charging 5% on FC then Recepient cannot Avail ITC on same infact RCM attracts. The recepient can avail ITC on GTA services only when GTA is charging 12% on FC Note : GTA is not required to Charge 5 % when Recepient of same is Registered & liable to do RCM, moreover Recepient shall not pay the 5% extra to GTA , when he is doing RCM

CA PARTH SHAH

CA PARTH SHAH (Expert)
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02 December 2019 If GST has charged 5 % on Forward charge, then violation has been done by the GTA and not the service recipient. Service Recipient cannot be denied ITC when GTA has already paid the GST instead of Service Receipient who had to Pay GST on RCM basis. In this case there is no revenue loss to the Government as Goverment received the tax. GTA should be charged for short charging of GST. Question of Denial of ITC to receipient do not arise at all.

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