Regarding GTA itc

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This query is : Resolved

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This discussion clarifies how to handle input tax credit (ITC) for GTA services where reverse charge mechanism (RCM) applies. If RCM is applicable (e.g., 5% IGST or 2.5% CGST/SGST charged), you should not claim the ITC shown in GSTR 2A. Instead, you need to pay the RCM liability and file your GSTR 3B ignoring the GSTR 2A entries for this specific ITC. If RCM is not applicable (e.g., 12% IGST or 6% CGST/SGST charged), you can proceed with claiming the ITC as available.

sahil siddiqui

sahil siddiqui (Querist)
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20 August 2020 GTA registered in MP (RCM applicable)
input tax credit shown in GSTR 2A
1. while filing 3B we need to first claim then reverse the itc or,
2. just file nil return and ignore the itc shown in GSTR 2A.

Udaya Chandran

Udaya Chandran (Expert)
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20 August 2020 If the GTA charges 12% IGST or 6% CGST & SGST each, then RCM is not applicable. GTA may have charged 5% IGST or 2.5% CGST & SGST each, in that case, RCM is applicable, you can take ITC as available in GSTR 2A and also you need to pay RCM.