The Goods Transport Agency (GTA) had charged 5% GST in the invoice against transportation charges to XYZ Ltd. XYZ had claimed input tax credit against this. 1) Whether XYZ is eligible to claim such ITC? 2) If not, what is the correct procedure?
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GTA Service and ITC + RCM
Replies (1)
Summary: You cannot claim ITC on the 5% tax charged by the GTA because that specific rate is a "no-ITC" concessional route. To claim ITC, the transaction must be processed under the Reverse Charge Mechanism (RCM), where you pay the tax to the government yourself and then take the credit.
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