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GTA service and ITC

ITC / Input 198 views 6 replies
sir
my clients have a GTA service.he is registered in West Bengal.He is not charge GST in his invoice. he have few own truck and haired local truck for his business. He takes ITC for his business expenses like repair of own truck, purchase of spare parts of own truck, telephone expenses, sales promotion experience, gift to clients etc. He never adjust his ITC because he have not taxable sale. every month he takes ITC and increase ITC in credit ledgers.
now his lawyer asked to revarsed all ITC. his at present ITC is near about 3.5 lakh.
sir what he do? if he reversed all his ITC then what column he show in Gstr 3b. pl guide me
Replies (6)
GSTR-3B Table:4(b)-1

You can adjust some amount by invoicing to B2C (i. e. Supply to Unregistered Customers)

As per rules 42 & 43 of CGST Rules – These rules require that input credit must be reversed for goods and services, where they have been used partly for business and partly for other purposes, to the extent not used for business. Similarly, input credit reversal is also required where supplies include taxable, exempt and nil rated supplies. In the same manner, input credit related to capital goods used for business and other purposes, for taxable, exempt, nil rated supplies must also be reversed to the extent not used for business. Details formulae have been prescribed on how to go about doing this.

Others – Any other ITC which has been reversed in the books by you.
Yes you can reverse Under rule 42 , under table 4 , Row B (1)
thanks, but my question is should he reversed his unutilized ITC? Local lawyer said because GTA service provider is not taxable service in that is why he never claimed ITC. If taken ITC it should be revised, sir it is true
Dear Anshuman Basu

Yes GTA can avail ITC:

In case GTA opt to pay GSt @ 12% and can avail ITC as per Notification No. 20/2017 – Central Tax (Rate)

But as per rule 42 you have to reverse the ITC claim beacuse for the period you claim ITC the Outward supply was exempted.

And , yes your lawyer is correct.

Note :
As per above Notification you can opt for the same on start of fy . so for you its 1.4.2019
But when you are raising invoice to Unregistered Person, GST need to be paid by GTA. You can take further consultation regarding the same.
@ Rohit Ji

Transportation Services by GTA to URD is exempted vide Exemption No 21 A, noti.32


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