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

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Mahendra Choudhary

CA CS

35 Points Posted on 22 July 2020

Need clarification on input claim available to transporter on a purchase of trucks.

Replies (5)

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.

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 22 July 2020

Can You elaborate with more details...?

Transporter means GTA or other...?
What are the supplies You made...?

CA Altamush Zafar

GST Consultant

10402 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

CA Mayank A Jain

Chartered Accountant in Practice

855 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.

Vijayprakash P

776 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).

annu Goyal

641 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)