ITC on GTA paid for outward transportation

[GOPAL CHOWDHURY]

Dear Experts,

As under GST, GTA will be payable under reverse charge and forward charge notification was provided in that respect.

It was further clarified that ITC will be available for the RCM paid under reverse charge under section 9(3) of the CGST Act, 2017 and not on the forward charge.

in this regard I want to know, can a manufacturing company avail ITC on the GTA paid by them for outward transportation.

As under erstwhile law ITC on outward transportation is not allowed.

kindly let me know.

AI Summary

Clarification on GST: ITC on Goods Transport Agency services under reverse charge mechanism, correcting to Section 17(5)(b) CGST Act. A discussion on the Goods and Services Tax (GST) regarding Input Tax Credit (ITC) on Goods Transport Agency (GTA) services for outward transportation. The initial query asks if a manufacturing company can avail ITC on GTA paid for outward transportation under the reverse charge mechanism (RCM) as per section 9(3) of the CGST Act, 2017. An expert clarifies that ITC is available to the service recipient under RCM, not forward charge, and notes the importance of business context. A correction is made regarding the applicable section of the CGST Act, highlighting Section 17(5)(b) instead of Section 15(5)(b).