ITC to recipient on GST paid under reverse charges-Inward/Domestic outward/export outwards.TA services

[Narendra Soni]

Dear Experts,

Kindly suggest whether ITC is available to recipient of GTA services who pay GST under reverse charge on Inward and outward transportation charges in GST. Further please suggest ITC is available on Outward transportation meant for domestic supply and for export supplies .

In existing service tax laws, cenvat is eligible on inwards GTA service but not allowed for domestic outward GTA services.

Kindly suggest expert views.

[prakash kumar]

Dear friend,

In GST regime ITC on any Input service is available, if the services availed is in furtherance of business. But there is few exceptions. As per the "Fitment of rates of services were discussed on 19 May 2017 during the 14th GST Council meeting" rate of GST on GTA service is 5% without ITC.

Accordingly no ITC available.

[Narendra Soni]

Dear sir,

I think the word"5% without ITC"is for service provider. Recipient is not restricted in this wording.

Other experts, Kindly provide your expert views.

[SHIVKUMAR SHARMA]

I agree with the view of Shri Narendra Soni.

AI Summary

Input tax credit on GTA services may be restricted where the rate is specified without ITC for suppliers.
The parties dispute whether recipients can claim input tax credit for GTA services paid under reverse charge. One view relies on GST rate fitment labeling GTA as taxed at a specified rate without ITC and concludes ITC is not available. Another view contends that the designation of the rate as without ITC pertains to providers and does not automatically bar recipients who discharge tax under reverse charge from claiming input tax credit for inward or outward transportation.