TaxTMI 
TaxTMI 
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
GTA BILL WITH 5, 12 AND 18 % CHARGE
13 Sep 2017 
5 Replies 
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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. (AI Summary)
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. (AI Summary)