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ITC of Freight

22 October 2019

In the case of trading, freight charged with 5% gst. My question is, can I take input in such freight. Both parties are registered.

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4 Replies

Hardik (Professional) (918 Points)
Replied 22 October 2019

Tax on Freight charges of 5% is payable on reverse charge basis. Here you're liable to pay such tax on reverse charge basis through e cash ledger and you can avail ITC once you've paid the tax..

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 23 October 2019

No.... you cannot.
As per Notification 13/2017 CT Rate , if GTA is providing services to Registered person is not required to Charge GST on bill As it's Recepient who is liable to do RCM .
As per Notification 22/2017 CT .(R) , GTA has given option to charge 12%. on FC & Can claim ITC on his Inward supply.
Hence the Registered Recepient can avail ITC only when GTA ihas charge 12% GST FC

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Sajeeb Rahman (18 Points)
Replied 23 October 2019

Thank you sir, thank you very much

1 Like

Hardik (Professional) (918 Points)
Replied 24 October 2019

I disagree with Mr. Pankaj,

Registered person (recipient of services) can take ITC upfront if GTA has opted for 12% rate, here compliance burden is on GTA...

Also, the recipient can avail ITC of tax paid on reverse charge if GTA has opted for 5% rate..

Registered recipient is indifferent.. he will get ITC in both the cases