ITC on GTA

1.Notification No. 13/2017-Central Tax (Rate) Dated 28-June-2017

  AS PER ABOVE NOTIFICATION

  GST TO BE PAID BY RECIPIENT (NOTIFIED CATEGORIES) OF SERVICES - RCM

2.Notification No. 20/2017-Central Tax (Rate) Dated 22-Aug-2017

 AS PER ABOVE NOTIFICATION

GTA CAN CHARGE NIL, 5 % & 12 % AS PER BELOW

NIL - SERVICE TO NOTIFIED SEVEN CATEGORIES OF RECIPIENTS- RCM

5% - SERVICE TO UNREGISTERED PERSONS BUT GTA CANNOT CLAIM ITC FOR THEIR INPUT SERVICES.

12% - SERVICES TO ALL CATEGORIES IF GTA CLAIMS ITC FOR THEIR INPUT SERVICES.

ISSUE: IF GTA CHARGE 12% TO NOTIFIED SEVEN CATEGORIES OF RECIPIENTS

             RCM APPLICABLE OR NOT?

3.Notification No. 22/2017-Central Tax (Rate) Dated 22-Aug-2017

AS PER ABOVE NOTIFICATION

IF GTA CHARGE 12 % TO NOTIFIED CATEGORIES OF RECIPIENTS - RCM NOT APPLICABLE.

4.Notification No. 32/2017-Central Tax (Rate) Dated 13-Oct-2017

AS PER ABOVE NOTIFICATION

RATE OF TAX IF GTA SERVICE TO UNREGISTERED PERSONS – NIL

CONCLUSION

# GTA SERVICE TO UNREGISTERED PERSON - NIL

# GTA SERVICE TO NOTIFIED RECIPIENTS/REGISTERED PERSON - NIL(COMES UNDER RCM)

AS A SERVICE PROVIDER GTA HAS ONLY TWO OPTIONES

1. IF GTA CLAIMS ITC ON THEIR INPUTS

    RATE OF TAX - 12 % TO ALL SERVICE RECIPIENTS

2. IF GTA HAS NOT CLAIM ITC ON THEIR INPUTS

    RATE OF TAX – NIL

SERVICE RECIPIENT CAN TAKE BOTH 12 % (GTA CHARGED) AND 5% (RCM PAID) AS ITC.

GTA can take ITC, if GTA charge GST @ 12%. But if he want to pay GST @ 5% on his supplies, he cannot take ITC.

Pls check the conclusion para of below link.

https://www.cbec.gov.in/resources//htdocs-cbec/gst/goods_transport_service.pdf