ITC on GTA

[Dinesh Biyanee]

In the rates of services of GTA it is written that 5% with no ITC. and 12% with ITC if on forward charge

can we avail credit if it is 5% on RCM

AI Summary

GST on Goods Transport Agency Services: 5% Rate Blocks ITC, 12% Rate Allows ITC with Forward Charge A discussion on the Goods and Services Tax (GST) concerning Goods Transport Agency (GTA) services addresses the applicability of Input Tax Credit (ITC). It is noted that a 5% GST rate on GTA services does not allow ITC, whereas a 12% rate does, if on forward charge. Under reverse charge mechanism (RCM), the recipient must pay the tax. Clarifications indicate that ITC is available if the service is used for taxable business, provided the transporter hasn't claimed input tax credit. The forum participants express agreement with these interpretations.