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Gst relating to GOODS TRANSPORT AGENCY

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zanis 0071

89 Points Posted on 26 September 2021

In Gta.. through forward charge: either 12% with itc or 5% with out itc is given to gta
what's the reason for giving itc only when gta choose 12% on bill?? can anyone explain this??

Replies (3)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) options for Goods Transport Agencies (GTA). GTAs can choose between a 5% tax rate where the recipient pays GST and the GTA cannot claim Input Tax Credit (ITC), or a 12% forward charge rate where the GTA collects GST, pays it to the government, and can claim ITC. The thread also touches upon practical issues like non-compliance with Reverse Charge Mechanism (RCM) and claiming ITC on late RCM payments.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 26 September 2021

As per Notification 11/2017 GTA are given the option that they can operate under 5% where recipient will pay tax but GTA will not claim any ITC.

They can operate in 12% forward charge where the GTA will charge GST and pay taxes to government and will also claim ITC.

zanis 0071

89 Points Posted on 26 September 2021

As in pratical scenarios..some people need to pay under rcm but they don't pay..while audit..should we make rcm payment and claim input of paid amount??