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gst on freight

rajnarsimha (accountant) (24 Points)

17 February 2018

sir, we received freight bill from transporter they charged 5% GST included, shall we take input?

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3 Replies

RAMESH KUMAR SINGLA (PROFESSIONAL) (1777 Points)
Replied 17 February 2018

The GTA has the option to be a normal registereed taxpayer. The Govt vide notification no. 20/2017 dated 22.08.2017 has allowed them to pay concessional GST @ 12% with ITC facility. You are eligible to take ITC of such tax suffered by you. I donot understand why the GTA has charged you GST @ 5% and the same appears to be incorrect. This rate is applicable under RCM only.

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Mondira Saha (GST) (3925 Points)
Replied 18 February 2018

yes you can claim ITC
GTA have option to choose 12% with ITC and 5% NO ITC ( applicable on GTA) THERE is no boundation that he can only choose 12% and its not true that 5% only charge in RCM

RAMESH KUMAR SINGLA (PROFESSIONAL) (1777 Points)
Replied 19 February 2018

Have you received these services as an individual or proprietory firm? If yes, then the GTA has the option to choose to pay GST @ of 5% or 12%. Whatever tax is charged to you, the same can be availed as ITC by you. If you are a recipient specifed in notification 13/2017, the you have to pay the GST under reverse charge and you can choose to pay the tax @ 5% or @ 12% and take ITC accordingly.