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ITC for GTA 5% under RCM

Siva Raj (358 Points)

19 November 2018

Shall I take ITC for GTA 5% paid under RCM by service receiver.

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19 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 19 November 2018

Yes... You can take ITC if You are Service Receiver.

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Siva Raj (358 Points)
Replied 19 November 2018

thank you sir can you tell section?

Prashanth Prashu (7 Points)
Replied 19 November 2018

under section 9 (3) you can take....

1 Like

vikas chaudhari (28 Points)
Replied 19 November 2018

can you please explain as to how can we claim itc for GTA 5% when it is non refundable

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 20 November 2018

@ Vikas.,
Pls ask clearly (when it is non refundable) what is this meaning?

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 20 November 2018

If you are GTA charging 5% GST cannot claim ITC on inward supplies. (As per 11/2017 CT (r)
And if charging 12% can claim ITC on inward supplies(Notification 20/2018, CT (r))

3 Like

vikas chaudhari (28 Points)
Replied 20 November 2018

sir, I am a receiver of GTA service, can I claim itc under 5% RCM or 12% RCM

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 20 November 2018

@ Vikas.,

Yes...
You can claim ITC for the payment of RCM @ 5%.
You don't pay 12% tax, Just pay 5% & claim it...

1 Like

vikas chaudhari (28 Points)
Replied 20 November 2018

I am receiving interest on delayed payment from debtors, but the debtors are not charging any gst on it. Am I liable to pay gst for the same. if yes under RCM or normal gst

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 20 November 2018

It's charged by You. So, You charge GST in the Interest and Pay to govt.

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vikas chaudhari (28 Points)
Replied 20 November 2018

for eg. I am receiving Rs. 1000/- as interest, so on which amount is gst chargeable ie. on rs 1000/- or Rs. 1000/- is inclusive of gst. Secondly who will take credit of the gst paid.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 20 November 2018

If You are charge Rs. 1000 as Interest then Collect GST @ 18% on Rs. 1000 = Rs. 180. You receive Rs. 1180.

And You ll issue invoice or (Debit Note). This is Your one of outward supply...

Your customer can claim ITC in this GST...

2 Like

vikas chaudhari (28 Points)
Replied 20 November 2018

Customer is not showing any gst he's just paying me the amount as interest. Then am I liable to pay for the amount.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 20 November 2018

Originally posted by : vikas chaudhari
	Customer is not showing any gst he's just paying me the amount as interest. Then am I liable to pay for the amount.