whether input credit on freight avail in gst return
26 Replies
Nihit Somani
(109 Points)
Replied 11 November 2018
in the case of RCM you are required to pay GST through cash mode and then you are eligible to avail the ITC of freight paid.
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 11 November 2018
Yes... ITC available.
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 11 November 2018
@ Rajesh
If freight is charged in bill with Goods , you can avail ITC (As per section 16)
If GTA has Raise you a bill & charged 5% GST you cannot avail ITC (As per Notification 11/2017 CT (r)
If GTA has Raise you a bill & charged 12% GST , you can avail ITC (As per Notification 20 CT (r)
If freight is charged in bill with Goods , you can avail ITC (As per section 16)
If GTA has Raise you a bill & charged 5% GST you cannot avail ITC (As per Notification 11/2017 CT (r)
If GTA has Raise you a bill & charged 12% GST , you can avail ITC (As per Notification 20 CT (r)
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 11 November 2018
No...
GTA can't charge 5% for Transport / Freight charges. It's payable by recipient as RCM and Also avail the ITC benefits.
GTA can't charge 5% for Transport / Freight charges. It's payable by recipient as RCM and Also avail the ITC benefits.
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 11 November 2018
Dear Raja ji
plz refer s.no 11 of notification 11/2017 CT (r) GTA can charge 5% without ITC
plz refer s.no 11 of notification 11/2017 CT (r) GTA can charge 5% without ITC
Nihit Somani
(109 Points)
Replied 11 November 2018
there are 2 scenario
1. If GTA charges 12% GST then no question of RCM arises and the receiver can avail ITC.
2. If GTA charges 5%
For registered receivers - RCM at 5% will apply and they can avail ITC once they pay GST.
For unregistered - GTA will charge 5% in invoice itself
1. If GTA charges 12% GST then no question of RCM arises and the receiver can avail ITC.
2. If GTA charges 5%
For registered receivers - RCM at 5% will apply and they can avail ITC once they pay GST.
For unregistered - GTA will charge 5% in invoice itself
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 11 November 2018
Yes You are correct thats what i have stated that if GTA charge 5%, the recepient has to do RCM & can avail ITC
Actually i Replied on "GTA can't charge 5%"
Actually i Replied on "GTA can't charge 5%"
Kunal Mittal
(FINANCE OFFICER)
(580 Points)
Replied 12 November 2018
CASE 1:
GTA CHARGES 12% IN GR:
A). GTA DEPOSITS THAT 12% AND RECIPIENT TAKES ITC OF THAT 12%
B). NO ITC FOR GTA
CASE 2:
GTA DOESNT CHARGE ANY GST IN GR:
A). RECIPIENT DEPOSITES 5% AS RCM AND TAKES ITC OF THAT 5%
B). NO ITC FOR GTA
CASE 3:
GTA DOESNT CHARGE ANY GST IN GR AND DEPOSITS 5% AS GST
A). ???????????
B). NO ITC FOR GTA
CASE4:
GTA DOESNT CHARGE ANY GST IN GR AND DEPOSITS 12% AS GST
A). ????????????
B). ITC OF 12% FOR GTA.
THIS IS MY UNDERSTANDING. KINDLY CORRECT IF I'M WRONG.
Rakesh
(Self Employed)
(51 Points)
Replied 12 November 2018
If GTA has charged 5% as GST then he is not eleigible to take ITC, but the receiver of GTA invoice can claim ITC
Rakesh
(Self Employed)
(51 Points)
Replied 12 November 2018
GTA can charge 5% GST with no ITC or 12 % GST with ITC
Parameswaran Thathamangalam
(86 Points)
Replied 06 July 2020
What I have learnt is that if GTA don't pay any GST and ask recipient to pay it under RCM, recipient has two options
1. Pay 5%GST(or2.5+2.5 depending on location of recipient) ,if doesn't want to claim ITC.
2. Pay 12% GST and avail full ITC. If material is transported for business, recipient may choose option2.
Parameswaran Thathamangalam
(86 Points)
Replied 06 July 2020
What I have learnt is that if GTA don't pay any GST and ask recipient to pay it under RCM, recipient has two options
1. Pay 5%GST(or2.5+2.5 depending on location of recipient) ,if doesn't want to claim ITC.
2. Pay 12% GST and avail full ITC. If material is transported for business, recipient may choose option2.
Parameswaran Thathamangalam
(86 Points)
Replied 06 July 2020
What I have learnt is that if GTA don't pay any GST and ask recipient to pay it under RCM, recipient has two options
1. Pay 5%GST(or2.5+2.5 depending on location of recipient) ,if doesn't want to claim ITC.
2. Pay 12% GST and avail full ITC. If material is transported for business, recipient may choose option2.
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