GST - RCM on GTA Services (Goods Transport Services)
The service recipient can avail Input Tax credit on the Tax amount that is paid under reverse charge on goods and services. The only condition is that the goods and services are used or will be used for business or furtherance of business.
Suppose the Registered Taxable Person, Mr. A received GTA Services from an Corporate Entity, of Rs. 50,000 taxable at the GST rate of 5%. In this case the Accounting entry will be as follows:
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