Cenvat credit of GTA under GST

[Guest]

Sir,

Whether the Input Tax credit of Inputs, Capital Goods, Input Services were available for the Service provider i.e., transporter?

If it is so what is the sense of 5% NO ITCin the schedule of GST rates for services as approved by GST council?

[piyush agarwal]

Transporter cannort used any Input Tax credit of Inputs, Capital Goods, Input Services. What ever GTA collect from customer he need to deposit the same to govt. He cannot set off his liability with cenvat available to him.

AI Summary

Input tax credit restriction prevents transporters from using ITC to offset GTA tax; collected amounts must be deposited. Transporters (GTAs) cannot utilise Input Tax Credit on Inputs, Capital Goods or Input Services to set off tax liability for goods transport agency services. Amounts collected under the GTA rate element specified with no ITC must be deposited to the government and cannot be offset against any cenvat/ITC balance of the transporter.