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

Clarification Sought on ITC Availability for GST Paid Under Reverse Charge for GTA Services in Business Use A participant in a discussion forum sought clarification on whether Input Tax Credit (ITC) is available for Goods and Services Tax (GST) paid under reverse charge for Goods Transport Agency (GTA) services, specifically for inward and outward transportation related to domestic and export supplies. An expert responded that under GST, ITC is generally available for input services used in business, but noted that GTA services taxed at 5% do not allow ITC. Another participant argued that the 5% restriction applies to service providers, not recipients, and sought further expert opinions.