GST - Input claim process to transporter on a purchase of trucks.

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CA CS
245 Points Posted on 22 July 2020
Need clarification on input claim available to transporter on a purchase of trucks.
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On 22 July 2020 at 08:12 Report
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Quick Summary
This discussion clarifies the availability of GST input tax credit (ITC) when transporters purchase trucks. The key factor determining ITC eligibility is whether the transporter is a Goods Transport Agency (GTA) and how they account for GST. If a GTA operates under the forward charge mechanism (paying 12% GST), they can claim ITC. However, if they operate under the reverse charge mechanism (RCM) or their services are exempt, ITC is generally not available.

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"Do the Right Thing...!!!"
128157 Points Posted on 22 July 2020
Can You elaborate with more details...?

Transporter means GTA or other...?
What are the supplies You made...?
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On 22 July 2020 at 09:01
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GST Consultant
15986 Points Posted on 22 July 2020
If transporter is GTA and under RCM - No Itc is available
If transporter is under forward charge then ITC available.
If transporter services are exempt then no ITC available
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On 22 July 2020 at 09:06
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Chartered Accountant in Practice
1260 Points Posted on 22 July 2020
GST could be availed by the transporter where he is paying GST at the rate of 12% on the GTA services. Further, once he pays at 12%, he cannot opt for 5% or RCM.
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On 22 July 2020 at 12:07
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1313 Points Posted on 22 July 2020
ITC will be allowed on Motorvehicles (other than conveyance ) used to transport goods from one place to another. However, this is related to other transporters. and not Goods transport Agencies(GTA).
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On 22 July 2020 at 12:48
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1102 Points Posted on 22 July 2020
Transporter -
If transporter is GTA then if he registered as normal taxpayer (Forward Charge)
then he can claim ITC
otherwise No ITC (As RCM applicable, Receipt will take ITC)
1 Reply
On 22 July 2020 at 13:03

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