gst rate for gta and itc credit eligibility

[Ramakrishnan Seshadri]

Dear Sir,

We are manufacturers of automobile parts. We use to hire transport agencies to transport our goods to our customer.

The transport agency is also registered with the gst and having a valid gstin.

Now our question, the transport agency is issuing invoice charging gst of 5%.. In another case the gta is charging cgst 6%+sgst 6%.

Could you please confirm credit is eligible on this

Thanks & Regards

S.Ramakrishnan

AI Summary

Manufacturers Can Claim ITC on GTA Services Charged at 5% or 12% GST; Supplier Restrictions at 5% Rate A discussion forum addressed a query about the Goods and Services Tax (GST) rates applicable to Goods Transport Agencies (GTA) and the eligibility for Input Tax Credit (ITC) by a manufacturer of automobile parts. The manufacturer inquired about ITC eligibility when a transport agency charges either 5% GST or 12% (6% CGST + 6% SGST). Responses confirmed that the recipient of the service can avail ITC in both scenarios, with no restrictions at the customer's end. However, if the supplier charges 5% GST, they cannot claim ITC on their inputs and input services.