Input Credit on GTA Service

[Indrajit Mondal]

Dear Sir,

We are a construction company and we will doing some projects for the same we need to send cements/sand/stone chips etc to every site and we will hire trcuk/lorry for the same

We will received invoice from the transporter which is include Service Tax under RCM on GTA after abatement of 30%

Now my question is can we claim the input credit after paying the liability under RCM direct to Govt via challan

Please reply

[KASTURI SETHI]

Yes. You can avail input credit on inward freight as well explained by you.

[Indrajit Mondal]

Dear Sir,

Thanks for your reply and support thanks Sir...

AI Summary

Input tax credit on inward freight under reverse charge can be claimed after payment of tax via challan. Where a recipient of GTA services pays the service tax liability under the reverse charge mechanism directly to the government by challan, that tax may be availed as input tax credit on inward freight for movement of construction materials, subject to the usual conditions for claiming credit.