We are a GTA ( Partnership firm) and have opted for FCM . We have utilized ITC . Since last 6 months there is no ITC available for us to utilize and we have been paying GST collected from clients. We have taken ITC on purchase of commercial vehicles. Now as the competition is growing in the industry most of our clients are insisting on RCM . We have decided to float another partnership firm which will be billing to the client under RCM and the original firm will provide vehicles to the new firm on paid basis. Thus, the original firm will book turnover under exempted category ( GTA to GTA).
1. Can we adopt this solution ?
2. Will there be reversal of ITC already availed ?
CAclubindia
