Gst relating to GOODS TRANSPORT AGENCY

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.