Rcm for gta
This query is : Resolved
17 July 2017
payment made under RCM by GTA be available to adjust in subsequent month liability?
CA Pradeep Sharma
(Expert)
17 July 2017
Liability on GTA service received and pay tax under RCM can be taken as ITC in month in which tax paid. But such ITC cannot used against liability which create in RCM
17 July 2017
My question is not about " to take ITC on GTA services or not", whether tax paid under RCM on URP supplies by GTA is available ( like remaining Taxable person) in subsequent month to discharge 5% on GTA services or to treat it as just cost.
20 July 2025
Great question about RCM on GTA (Goods Transport Agency) services!
Here’s the clarification:
1. Tax Payment under RCM on GTA services by Registered Recipient:
When you (a registered GST taxpayer) receive GTA services from an unregistered GTA, you pay GST under Reverse Charge at 5% (2.5% CGST + 2.5% SGST or 5% IGST depending on state).
2. Can the tax paid under RCM on GTA services be adjusted against your output GST liability in subsequent months?
Yes, absolutely!
The tax you pay under RCM on GTA services is eligible for Input Tax Credit (ITC), subject to normal ITC conditions.
So, you can claim this RCM tax paid as ITC and set it off against your output tax liability in subsequent GST returns (GSTR-3B).
3. Does paying RCM on GTA services count as "just cost"?
No, it’s not just a cost to be expensed.
Since you can claim ITC, the GST paid under RCM is essentially recoverable (subject to ITC rules), and not a final cost.
Here’s the clarification:
1. Tax Payment under RCM on GTA services by Registered Recipient:
When you (a registered GST taxpayer) receive GTA services from an unregistered GTA, you pay GST under Reverse Charge at 5% (2.5% CGST + 2.5% SGST or 5% IGST depending on state).
2. Can the tax paid under RCM on GTA services be adjusted against your output GST liability in subsequent months?
Yes, absolutely!
The tax you pay under RCM on GTA services is eligible for Input Tax Credit (ITC), subject to normal ITC conditions.
So, you can claim this RCM tax paid as ITC and set it off against your output tax liability in subsequent GST returns (GSTR-3B).
3. Does paying RCM on GTA services count as "just cost"?
No, it’s not just a cost to be expensed.
Since you can claim ITC, the GST paid under RCM is essentially recoverable (subject to ITC rules), and not a final cost.
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