GTA BILL WITH 5, 12 AND 18 % CHARGE

[nandankumar roy]

RECENTLY VERY FEW TRANSPORTER CHARGED 5 % BY ONE AND ANOTHER CHARGED 12 % AND ANOTHER CHARGED 18 % ON BILL AND REALLY CONFUSED WHETHER CREDIT IS ALLOWABLE ON IT TO US AS WE ARE RECIPIENT AND EARLIER PAID 5% ON TOTAL VALUE AS REVERSE CHARGE MECHANISM. PLEASE TELL CHARGED BY GTA PROVIDER IS VOID OR NOT AND IF WE HAVE ANY PROVISION NOT TO ACCEPT THIS TYPE OF BILL. IN CARGO SERVICE 18% VALID BUT WHAT ABOUT GTA PROVIDER AS WE ARE RECIPIENT OF SERVICE. PL HELP

[Ganeshan Kalyani]

First of all GTA is exempted from taking GST registration. However, if they get registered then they have to charge GST on the consignment note / invoice raised on the service receiver.

The rate of tax is 5% if the transporter is not availing the input tax credit. There is option to the transporter to take input tax credit but the rate of tax will be 12%.

[KASTURI SETHI]

There is provision to reject the invoice if not proper, here invoice is correct. Only either 5 % or 12 % rate are correct as rightly explained by Sh. Ganeshan Kalyani Ji. If rate is wrong, you may reject the invoice common portal and credit note will be issued by your supplier. Cargo rate has nothing to do with GTA.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir's view. Further, you are eligible to take input tax credit either on the tax paid under reverse charge for GTA and tax charged by transporter on his consignment. The condition is the input should have been used in course or furtherance of your business. Thanks.

[nandankumar roy]

THANKS TO ALL OF YOU,

REGARDS,

ROY

[Ganeshan Kalyani]

You are welcome Sir.

AI Summary

GTA taxation: recipients can claim input tax credit on GST charged or paid under reverse charge when used in business. GTA services are exempt from mandatory registration, but a voluntarily registered transporter must charge GST on the consignment note. The tax rate depends on whether the transporter avails input tax credit: one rate applies if the transporter does not take credit and a different rate applies if they do. Recipients may claim input tax credit on GST paid under reverse charge or GST charged by the transporter, provided the input is used in the course of business. Incorrect rates may be contested and corrected via credit notes or portal amendment.