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GTA GST @ 5%

DALIP KUMAR (B.Com) (245 Points)

19 June 2019

transporter given a bill including 5 % ( 2.5%+ 2.5% ) GST rate
I have make him payment including GST ,
can I take GTA input 5% .

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11 Replies

Ajay Gupta (PRACTICING CHARTERED ACCOUNTANT) (196 Points)
Replied 19 June 2019

Hi Dalip,

The recipient of GTA service is entitled to take Input Tax Credit (ITC) of the amount of GST (2.5%+2.5%), provided it is used in the course or furtherance of business at his end.

Thanks

Ajay

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DALIP KUMAR (B.Com) (245 Points)
Replied 19 June 2019

thanks sir

CA Mayank A Jain (Chartered Accountant in Practice) (1260 Points)
Replied 19 June 2019

Dear Dalip,

Adding on to Mr. Ajay, you would also be required to pay GST under reverse charge. Further, such tax could also be claimed as ITC provided it is used in the course or furtherance of business.

shailendra shukla (Bhopal) (1741 Points)
Replied 19 June 2019

you cannot claim the tax mentioned in the invoice you will pay tax @ 5% under rcm and then you can claim the amount paid under rcm in the same month....

CA Mayank A Jain (Chartered Accountant in Practice) (1260 Points)
Replied 19 June 2019

You can take both the credit i.e., tax paid under reverse charge as well as paid to the GTA.
There is no restriction provided in law.

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 19 June 2019

As per Notification 13/2017 CT (R) GTA is services are Under RCM & As per Notification 22/2017 CT (R) , GTA can charge 12% On FC , & can avail ITC on its Inward Supply . Hence if GTA is Charging 5% on FC then Recepient cannot Avail ITC on same infact RCM attracts. The recepient can avail ITC on GTA services only when GTA is charging 12% on FC Note : GTA is not required to Charge 5 % when Recepient of same is Registered & liable to do RCM, moreover Recepient shall not pay the 5% extra to GTA , when he is doing RCM

CA Mayank A Jain (Chartered Accountant in Practice) (1260 Points)
Replied 19 June 2019

The restriction for a availing ITC is for the supplier and not the recipient. We as the recipient can take credit as there is no restriction on the recipient.

Mohan Bagalkot (Tax Consultant) (233 Points)
Replied 20 June 2019

Hi Guys One of my client providing transport service to his customers on fix charges and raising monthly invoice for transporting goods. Where to declare details in GSTR1 & GSTR3B.

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 20 June 2019

@ MAYANK

KINDLY REFER THE NOTIFICATION 13,20,22 OF CT RATE..

GTA CANNOT CHARGE 5% TO RECEPIENT WHO IS REGISTERED & LIABLE TO DO RCM. SO IN ANY CASE RECEPIENT IS LIABLE TO DO RCM . YES IF GTA IS CHARGING 12% ON FC THEN THE RECEPIENT CAN CLAIM ITC & NO NEED TO DO RCM (in term of noti.22)

CA Mayank A Jain (Chartered Accountant in Practice) (1260 Points)
Replied 20 June 2019

Mr Mohan,

Yes. You have to declare in GSTR-1 and GSTR-3B

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 20 June 2019

DEAR MOHAN

IF SUPPLIER OF TRANSPORTATION OF SERVICES IS NOT GTA THEN ITS EXEMPTED AS PER NOTIFICATION 12/2018 CT (R) ---- DECLARE IT IN TABLE 8 OF GSTR 1 & IN TABLE 3.1 (C) OF 3B

IF SUPPLIER IS GTA, THEN REPORT IT UNDER TABLE 4 (B2B) OF GSTR 1 & IN 3B UNDER TABLE 3.1(C)