GST ON GTA

[POLYPLEX CORPORATIONLTD]

Dear Expert

My query is we are in Area based Exemption under notification 50/2003. Now after the appointed day (01.07.2017), we will received bills of transporter pertains to May 2017 & June 2017. Then we have deposit GST @ 5% under reverse chrage? In present regime, we are not taking any service tax credit due to exemption but after GST, Can we take Service tax Credit on GTA for bills pertains to May & June 2017?

[Himansu Sekhar]

You cannot take the credit on the S.Tax paid on GTA service. Regarding liability to pay S.tax , experts may give their views.

[MUKUND THAKKAR]

please follow the procedure section 140 of GST act . for taking credit under GST.

AI Summary

Input tax credit transition: service tax paid on goods transport agency not eligible; follow GST transitional credit procedure.
Respondents advise that service tax paid on Goods Transport Agency bills relating to periods before the GST appointed day is not eligible for input tax credit, and that taxpayers should follow the statutory transitional-credit procedure under GST to determine and process any eligible credits or compliance requirements during the transition.