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GTA, RCM and INPUT

ITC / Input 489 views 5 replies
Dear Sir,
Please clear below confusion between two sentences.


The GTA service supplier is not entitled to take ITC on input services availed by him if tax is being charged @ 5% (2.5% CGST + 2.5% SGST).

In case the GTA service supplier hires any means of transport to provide his output service, no GST is payable on such inputs.
Replies (5)
1. First of all If GTA is supplying Goods Registered Person who is liable to do RCM , the GTA cannot charge 5% GST on FC . (Refer Notification 13/2017 CT(R))

2. As per Notification 12/2017 CT (r), Service from GTA to GTA is exempted
Thank you sir.
then can GTA charge 12% on fc to registered person who is receiving the service.?
Yes ,...In term to Notification 22/2018 CT(R) , GTA has given option to charge 12% on FC & can avail ITC on his inward supply & Recepient can also claim ITC on the same (No need to do RCM).

Note : The option can exercise in begining of FY & have to carry for whole year
Dear sir
many thanks for clear my doubts.
You are always welcome dear


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