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Input of Truck in case if GTA is billing under RCM

21 March 2018

Dear Sir/Mam,
Can ITC be availed on purchase of Truck , if assessee is a GTA and billing under RCM to his clients.
If yes, then how we claim a refund of it as in our case there will be no liability would arise at any point of time.
Pls respond it on urgent basis.
Thanks in Advance.

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12 Replies

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 21 March 2018

Sir , if GTA is charging 12 % ( forward charge), only then he can claim itc on his inward supply , As per notification 22

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Rahul Prasad (CA Student) (1683 Points)
Replied 21 March 2018

yes , agree with Pankaj Rawat sir. there is two rate in GTA 5% without input and 12% with input.

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Ankit Garg (Chartered Accountant) (73 Points)
Replied 21 March 2018

As per section 17 CGST Act, where input supplies are used for the purpose of making exempted supply ( exempted supply include supply under reverse charge mechanisam), then ITC not available for such inputs. hence as per fact of your case you are not eligible for taking ITC on truck.

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VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 21 March 2018

I think ITC for purchase of truck wouldn't allow for GTA services...

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 21 March 2018

vineeth ji, u r right but for GTA if he chargi g 12℅ forward charge in that case he liable to claim ITC , plz read notification 22 ct

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VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 21 March 2018

Originally posted by : Pankaj Rawat
	vineeth ji, u r right but for GTA if he chargi g 12℅ forward charge in that case he liable to claim ITC , plz read notification 22 ct

The case is about purchasing a truck... It's entirely different...

chamarthi venkatesh (Student CA Articleship) (848 Points)
Replied 21 March 2018

If you use the truck(Motor vehcle) for folloing purposes, then you can claim ITC on purchase of truck

(A) further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles
or conveyances;
(D) for transportation of goods

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 21 March 2018

Originally posted by : chamarthi venkatesh
	If you use the truck(Motor vehcle) for folloing purposes, then you can claim ITC on purchase of truck (A) further supply of such vehicles or conveyances ; or (B) transportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conveyances; (D) for transportation of goods

You can't avail the itc if you are a GTA.... If you are a transporter, it's ok..

1 Like

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 21 March 2018

Dear Vineeth ji I request u to
kindly read notifications 22, 20, 13 CT (rate)

GTA can claim ITC on his inward supply only when he is charging 12 % on forward charges

So As per above query if GTA is charging 5% on his outward supplies then he cannot avail any ITC on his inward supplies. (he cannot avail ITC on truck)

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 22 March 2018

Originally posted by : Pankaj Rawat
	Dear Vineeth ji I request u to kindly read notifications 22, 20, 13 CT (rate)GTA can claim ITC on his inward supply only when he is charging 12 % on forward chargesSo As per above query if GTA is charging 5% on his outward supplies then he cannot avail any ITC on his inward supplies. (he cannot avail ITC on truck)

No dear...we can't implement that rule here... It is a different case, it is not about the normal supply... It is about truck purchase... For a gta, they can't claim the truck ITC... If it is a transporter, definitely yes...

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 22 March 2018

Dear
why can't we implement here, because of huge input , sir no such descripttion is mention if input is huge u will not get the input.

written "input can avail in his inward supply"

sir don't take it otherwise we are doing a healthy debate,,😀🙏🏻

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 23 March 2018

Originally posted by : Pankaj Rawat
	Dear why can't we implement here, because of huge input , sir no such descriptttion is mention if input is huge u will not get the input.written "input can avail in his inward supply"sir don't take it otherwise we are doing a healthy debate,,😀🙏🏻

Nope... it's not a debate.. don't take it as like that... In this case we can't treat it as a inward supply... That's the main thing... if it is 5% or 12% , gta can't avail the itc for truck purchase...