Itc claim on gta services

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sir I have purchase iron and steel and take GTA service 50000/ and gta paid 5% forward charges who show my gstr2A then I am take itc claim this forward charg
Replies (6)
I think there is no problem
@ Mr Arvind.,

Check out the details correctly in Your GSTR 2A under rcm option...

GTA can't make forward charges with Tax rate @ 5%...

RCM option : Supply attract Reverse Charge - Y / N. If showing Y then You must be pay GST under rcm basis.

If 5% tax then there is option Y applied.
Exactly Mr Raja Sir...

Goods Transport Agency ( GTA ) have two options :

(i). Either opt for FORWARD CHARGE and pay GST @ 12%

OR

(ii). RCM by Recipient @ 5%.

@ Arvind Sir, since in your case the GTA is Registered and opted to pay GST under Forward Charge, then he is required to collect and pay 12% GST and not 5%.

Check your Tax Invoice and FORM GSTR-2A once. It must be 12% instead of 5%.

If he has collected 5% GST from his customers, then he is doing a mistake and can face litigation problem in the near future. Tell him to issue a DEBIT NOTE as prescribed under Section 34 of the CGST Act 2017 and collect Tax accordingly, to avoid paying General Penalty of upto Rs. 50,000 u/s 125.
@ Mr Shivam RC.,

Well reply by You...

But, I think Mr Arvind saw the GSTR 2A wrongly. He can't see the rcm option is Y / N (yes / no).

Bcoz,
Registered GTA file their GSTR 1 with b2b supply of service with tick option of "Supply atract reverse charge" and it's showing in recipient's GSTR 2A as "Y". It's mean recipient will be pay GST Tax under rcm basis...
No if someone laible for rcm then recipient has to pay tax and claim itc suppliers can claim refund for such paid GST...here supplier is not laible for pay TDS..

itc claim NOT applicable in your case,

but

rcm could be applicable

if gta filed their return with reverse charge applicable YES.


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