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If providing GTA services under RCM where ITC isn’t claimable
If you are providing GTA (Goods Transport Agency) services, where the recipient is liable to pay tax under Reverse Charge Mechanism (RCM), and you are also providing rental services to a company, can you claim Input Tax Credit (ITC) on the rental service, even though you cannot claim ITC on the GTA service?
Replies (2)
you are providing both GTA services (subject to Reverse Charge Mechanism) and rental services to a company.
As per GST regulations: - GTA services are exempt from GST, and you cannot claim ITC on GTA services. -
Rental services are taxable, and you can claim ITC on rental services. Since the two services are distinct, you can claim ITC on the rental services, even though you cannot claim ITC on the GTA services.
However, keep in mind: - Maintain separate accounts and records for both services. -
Ensure you meet all GST compliance requirements for both services. -
Claim ITC only on the eligible inputs used for the rental services.
Can I claim ITC on renovation or repair and maintenance of immovable property
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