Suppose a person is providing 1. GTA services to a registered factory and the factory is paying GST under RCM 2. other commission services in which he collects and deposits GST to govt.
Now can the Person take input tax credit on tyre, spare, new truck purchase etc?
The factory is paying GST under RCM @ 12% and taking input of the same.
Rules speicfy two rate i.e 5% without ITC and 12% with ITC. It also specifies that GTA while providing services to a list of specified person has option to choose between RCM and FCM.
In this case the person has choosed RCM. And the factory is paying tax @ 12%, can the person take ITC of tyre, spare or new truck purchases??
Read more at: https://www.caclubindia.com/experts/taxability-of-gta-under-gst-2746374.asp
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