Cenvat credit on gta

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PIYUSH SANCHETI (Querist)
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07 April 2014 I have a liability under reverse charge mechanism (GTA), so ST paid for GTA do we get the CENVAT CREDIT. If yes then IS THAT we get it in the same return .

Sandeep Mangal Agarwal

Sandeep Mangal Agarwal (Expert)
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08 April 2014 Dear Piyush,

You can get Cenvat Credit under Reverse Charge Mechanism on the "service tax paid on the basis of GAR-7 Challan" only.You have to pay Service Tax without utilising cenvat credit.(on liability of GTA in case of Reverse charge mechanism)

Cenvat Credit can be taken only on or after the day on which payment is made to service provider and the service tax is paid.

Thanks,