Gst on gta services

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Rajat

student

22 Points Posted on 29 June 2019

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

Replies (2)

Jigneshkumar Patel

GST Advisor

117 Points Posted on 30 June 2019

yes, GTA can take ITC if option of 12% choosen

Pankaj Rawat

GST Practitioner

29904 Points Posted on 30 June 2019

No .... when the GTA has opted for 5% is not liable to take ITC .

The GTA can claim ITC on inward supply only when he has opted to pay 12% On FCM (Notification 20 CT (R))

Note : Recepient discharge his liability by RCM & paying GST on 12% does not allow Supplier (GTA) to claim ITC on his inward supply, yes if GTA is charging 12% GST on FCM , the Recepient can claim ITC on Same & no need to do RcM