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rcm 5% on transportation

28 July 2018

dear experts
kindly advice me if I pay 5% on transportation as rcm then I can take itc ?
for itc anybody can pay 18% on rcm transportation

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6 Replies

Rahul Singh (32 Points)
Replied 28 July 2018

no if we pay 12% then we can claim ITC .

CA Sunil Kumar (Chartered Accountant) (4514 Points)
Replied 28 July 2018

You can claim ITC on payment of GST @ 5% under RCM on GTA services.

Prakash Chauhan (172 Points)
Replied 28 July 2018

tell me reason with itc and non itc with circular

CA Sunil Kumar (Chartered Accountant) (4514 Points)
Replied 28 July 2018

Service receiver can always avail ITC on GST paid under RCM.
Rule of with itc and without itc applicableIf GTA pays GST,

GTA has 2 options-

12% GST with ITC *

OR

5% GST with no ITC*

However, the GTA has to opt at the beginning of financial year.

*As per Notification No. 20/2017-Central Tax (Rate) 22nd August, 2017

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