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Input credit on freight

ITC / Input 9234 views 26 replies

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.

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.

Originally posted by : Parameswaran Thathamangalam
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.

 

Mr Thathamangalam,

 

The two options not for recipient. It's for GTA's own option.

If GTA opt 5% option then They can't get ITC on their inputs. And receipient will be pay GST under RCM basis...

If GTA opt 12% option then they can take ITC on their inputs and they will charge GST 12% on their services. Receipient can Take ITC as FCM no need pay RCM basis.

1. GTA , by name ARC, transported some material for me from Vadodara to Kerala. They are GST registered.

2. In the GC they have instructed that recipient(here myself) should pay GST under RCM

3. My Tax consultant says that I can pay 5% of the freight as GST through GSTR3B under RCM. But no ITC is permissible.

4 If I pay 12%of freight asGST, then I can claim full ITC, if the goods are brought for further business.

Is this OK?

Originally posted by : Parameswaran Thathamangalam
1. GTA , by name ARC, transported some material for me from Vadodara to Kerala. They are GST registered.

2. In the GC they have instructed that recipient(here myself) should pay GST under RCM

3. My Tax consultant says that I can pay 5% of the freight as GST through GSTR3B under RCM. But no ITC is permissible.

4 If I pay 12%of freight asGST, then I can claim full ITC, if the goods are brought for further business.

Is this OK?

 

 

BETTER TO ASK YOUR QUERY IN SEPARATE FORUM. DON'T BR CROSS OTHER PERSONS QUERY.... RIGHT...

Originally posted by : Parameswaran Thathamangalam
1. GTA , by name ARC, transported some material for me from Vadodara to Kerala. They are GST registered.

2. In the GC they have instructed that recipient(here myself) should pay GST under RCM

3. My Tax consultant says that I can pay 5% of the freight as GST through GSTR3B under RCM. But no ITC is permissible. - He is wrong. You can pay 5% and claim ITC for the same...

4 If I pay 12%of freight asGST, then I can claim full ITC, if the goods are brought for further business.

Is this OK? -  No it's not okay. No need pay 12%. The 12% or 5% concept only to GTA,

see above...

Thanks for your advice to refer my query to a separate Forum.I should have thought about it earlier. I have written to CBIC help desk and expect their reply soon.

Originally posted by : Parameswaran Thathamangalam
Thanks for your advice to refer my query to a separate Forum.I should have thought about it earlier. I have written to CBIC help desk and expect their reply soon.

 

Dear Mr : Parameswaran Thathamangalam,

 

I replied Your query. See the details above message...


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