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GTA - FCM switch over from 12 to 5

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ramesh rahul

20 Points Posted on 30 March 2024

Hi experts.

One of my client is doing Transportation business (GTA) and collecting tax under Forward charge.

He is imposing GST @ 12% in Tax invoice and claiming ITC for GST paid on his inward supplies.

Now he wants to switch over from 12% (with ITC) to 5% (Without ITC) from the FY2024-25 onwards.

my query : Is it possible to switch over from 12% to 5% under Forward charge? Pls advice

Replies (2)

Quick Summary

A transport business operating under GTA is looking to change its GST collection method. Currently, they charge GST at 12% under the forward charge mechanism, allowing them to claim Input Tax Credit (ITC). They wish to switch to the 5% rate (without ITC) from the next financial year. The key question is whether this switch is permissible under forward charge rules.