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ITC on trucks under GTA SERVICE

22 April 2024

can we claim ITC on the purchase of trucks under GTA and how much gst ITC claims in gstr 3b (i.e. 100% or something else)

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4 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5150 Points)
Replied 22 April 2024

If GTA provides goods transport service on road to an unregistered individual for personal use only then GTA will be liable to pay GST as a provider of service as because such service is excluded in Notification No. 13/2017- Central Tax (Rate) Dated: 28/06/2017 from specified service for the purpose payment of tax under reverse charge basis under sec 9(3) of CGST Act 2017

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 22 April 2024

@ Mr Abhishek,

Please ask Your query with correct details...

I can't understand this
"Purchase of Trucks -UNDER GTA"
What is the meaning of "under GTA"??!

CA Mayank A Jain (Chartered Accountant in Practice) (1260 Points)
Replied 23 April 2024

Where the GTA has opted for paying GST under forward charge at the rate of 12%, then the GTA can avail ITC of the GST paid on purchase of truck. The GTA can avail 100% of the credit once the conditions for availement of credit have been satisfied.

Money Money (413 Points)
Replied 23 April 2024

When it comes to claiming Input Tax Credit (ITC) on the purchase of trucks used for the Goods Transport Agency (GTA) service, the eligibility for ITC is subject to certain conditions under the GST law. As per the GST provisions, ITC can be claimed on motor vehicles used for the transportation of goods1.

Here are the key points to consider:

Eligibility: You can claim ITC on the purchase of trucks if they are used for the transportation of goods1.
GST Rate: The GST rate applicable to GTA services is generally 5% under the Reverse Charge Mechanism (RCM), provided that the GTA service provider does not claim ITC on the services used in supplying the transportation service2.
ITC Claim in GSTR-3B: The amount of ITC that can be claimed in GSTR-3B should reflect the actual ITC available as per the invoices. As of the latest updates, taxpayers can no longer claim provisional ITC; they can only claim ITC to the extent it appears in their GSTR-2B3.
Therefore, if you are purchasing trucks for your GTA business, you can claim 100% of the ITC on such purchases, provided all conditions under Section 16(2) of the CGST Act 2017 are met and the purchase is not blocked under Section 17(5) of the CGST Act1. It’s important to ensure that the trucks are used for the purposes specified in the GST law to maintain eligibility for the ITC claim.