TaxTMI 
TaxTMI 
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
ITC on GTA
15 Aug 2017 
4 Replies 
6373 Views Asked by
Input tax credit availability for GTA services follows recipient reverse-charge payment and supplier declaration on credit usage.
Tax on Goods Transport Agency services is payable by the registered recipient under the reverse charge mechanism; suppliers may publish a lower rate described as "with no ITC" only if they declare they have not availed credit on inputs, input services or capital goods used to provide the service. If the supplier has availed input tax credit, a higher rate applies. A recipient who pays GST under reverse charge may claim input tax credit for that GST to the extent the GTA service is used for taxable business. (AI Summary)
Tax on Goods Transport Agency services is payable by the registered recipient under the reverse charge mechanism; suppliers may publish a lower rate described as "with no ITC" only if they declare they have not availed credit on inputs, input services or capital goods used to provide the service. If the supplier has availed input tax credit, a higher rate applies. A recipient who pays GST under reverse charge may claim input tax credit for that GST to the extent the GTA service is used for taxable business. (AI Summary)