GTA itc claim

To claim Input Tax Credit (ITC) for the financial year 2024-25, you'll need to consider the transition from Reverse Charge Mechanism (RCM) to Forward Charge Mechanism.

Since you were under RCM in FY 2024-25, the recipient paid the tax. In this scenario, *you cannot claim ITC for FY 2024-25* as you were not the one paying the tax.

The recipient who paid the tax under RCM is eligible to claim the ITC.¹

However, for FY 2025-26, since you're switching to Forward Charge Mechanism, *you will be eligible to claim ITC* on the taxes paid.

Ensure you fulfill the necessary conditions for claiming ITC, such as having a valid tax invoice, paying the tax, and filing the returns within the specified time limit.² Keep in mind that the option to switch to Forward Charge Mechanism for FY 2025-26 should have been exercised by March 31, 2025.³

Generally, no—not merely because you switch to forward charge in FY 2025–26. If the GTA service was received in FY 2024–25 and the recipient paid GST under reverse charge, the recipient’s ITC (if otherwise eligible) belongs to the period in which the RCM tax was paid and the relevant ITC conditions were met. The GTA cannot claim that tax as its own ITC simply because it opts for forward charge in the following year.

• If the question is whether your GTA can claim ITC in FY 2025–26 on inputs or input services received in FY 2024–25, eligibility depends on the tax invoices, receipt, supplier reporting and the time limit under section 16(4)—generally 30 November following the financial year of the invoice, or the date of filing the annual return, whichever is earlier. A valid FY 2024–25 claim may therefore still be possible within that limit, subject to all conditions.
• The GTA’s forward-charge option for FY 2025–26 does not, by itself, change the tax treatment or ITC entitlement for FY 2024–25 supplies. The answer may differ depending on whether you mean ITC of RCM tax paid by the recipient or ITC on the GTA’s own purchases.

This distinction should be reflected in the GST return and invoice workflow when moving from RCM to forward charge. Manual tracking across tax periods is difficult; automation can reduce repetitive reconciliation work while leaving classification and eligibility decisions under professional control. At Jir AI we provide 2,000+ AI agents and 650+ integrations to streamline your practice’s day-to-day workload. WhatsApp us to explore the workflow: https://wa.me/message/3HVOZ7HIY4ESC1

GTA switching to forward charge from FY 2025-26:

• A GTA opting for forward charge (12% or 18% with ITC, depending on the option) from FY 2025-26 can take ITC on inputs and services from that year. ITC of FY 2024-25 (when it was under RCM or the 5% no-ITC option) isn't available, since those inputs related to supplies where ITC wasn't allowed. Check the current rates after September 2025.