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?
Menu
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.
Recent Topic
- 194JB INCOME
- Filing ITR3 where income under section 44AD with L
- What is superannuation fund
- GST Refund of input services under Inverted Duty S
- Dividend Reporting
- Real operational bottlenecks after firms use Tally
- Purchase return under gst
- Long Term Capital Loss - cannot be carried forward
- Cross-utilization of ITC between Trading and Resta
- Form 121 eligibility for non deduction of TDS for
Related Topics
CAclubindia
