Can a service recipient claim ITC on freight invoice which includes GST @ 5%?
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GST ITC Eligibility on Freight Bill to Service Recipient
Replies (19)
Service receivers can always avail ITC on GST paid under RCM.22-Jul-2022
Service by a GTA: GST rate
Any other goods: 5% No ITC OR 12% with ITC
Hiring out vehicle to a GTA: 0%
Service by a GTA: GST rate
Any other goods: 5% No ITC OR 12% with ITC
Hiring out vehicle to a GTA: 0%
Check RCM applicable or not ???
If it is for business purposes then it can be claimed
Freight is for business but here is to check whether RCM applicable or not.
If it is RCM then this question won't araise since credit will be in subsequent month
RCM credit available in the same month of payment
The statutory provision nowhere states that the service recipient is deemed supplier of goods.Considering from this angle the service recipient is deemed supplier of services.In caee of reverse charge , the service recipient is only discharging the liability of supplier of service.
It is not a necessity to register under gst in case for the service recipient.
claiming of input tax credit is not barred.
But in case of gta provisions of Sec 17(5) is applicable.
It is not a necessity to register under gst in case for the service recipient.
claiming of input tax credit is not barred.
But in case of gta provisions of Sec 17(5) is applicable.
GST paid under RCM will be credited to electronic cash ledger and adjusted against liability..
Credit will be eligible only after filing the GST returns. So same month can't claim for ITC and used for RCM liability in the month of payment
Credit will be eligible only after filing the GST returns. So same month can't claim for ITC and used for RCM liability in the month of payment
Here query is credit available or not, what sense is here in telling ITC availt in same month or next .
Thanks for the prompt response from all the professionals. But I guess my query has been linked with the RCM provisions. I would try to reiterate my query in a more clear manner-
If a Transporter issues an Invoice/ Consignment Note at concessional rate of 5% to it's customer (customer is herein referred as service receiver), then whether in such scenario the Service Recipient can claim ITC of this 5% which is mentioned in the invoice of GTA? Kindly note- this is a pure case of Forward Charge Mechanism rather than Reverse Charge.
Yes, you can avail ITC there is no any restriction.
You can claim ITC for that.
In my opinion it can be claimed only if appearing in 2B. Some GTAs mention GST rate in CN/Invoice But Do Not Charge the GST amount , thatmeans they do not collect GST amount. In that case it will be a case of RGM.
In my opinion it can be claimed only if appearing in 2B. Some GTAs mention GST rate in CN/Invoice But Do Not Charge the GST amount , thatmeans they do not collect GST amount. In that case it will be a case of RGM.
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