Input credit on freight

whether input credit on freight avail in gst return

Replies (26)
yes itc of freight can be availed .
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.
Yes... ITC available.
@ 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)
No...

GTA can't charge 5% for Transport / Freight charges. It's payable by recipient as RCM and Also avail the ITC benefits.
Dear Raja ji
plz refer s.no 11 of notification 11/2017 CT (r) GTA can charge 5% without ITC
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
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%"

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.

 

If GTA has charged 5% as GST then he is not eleigible to take ITC, but the receiver of GTA invoice can claim ITC

GTA can charge 5% GST with no ITC or 12 % GST with ITC

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.

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.

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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