gta credit

[Ramakrishnan Seshadri]

Dear Sir,

We are manufacturers of automobile parts supplying to OEM. The finished goods are supplied to them through transport agency.

We have an understanding with an intermediate service provider who will recieve the transport agency invoices in his name with gst 5% and he will pay to the transport agency and gst to the government.

After that he will raise invoice on us for this transport service along with his service and claim gst.

Now our question is whether gst paid and claimed by the intermediate service provider is eligible for gst credit by us

Please clarify experts

Thanks & Regards,

S.Ramakrishnan

[Ganeshan Kalyani]

In my view, yes the credit is eligible .

[Nash Industries I Pvt Ltd]

The intermediary is a service provider. He needs to charge GST on his invoice to you. The GST so paid can be claimed as credit by you.

regards

S.Ramaswamy

[Ganeshan Kalyani]

One of the condition for input tax credit is that the supplier of service should file GST return. And that the invoice uploaded by him should match with your uploaded detail. So please make him aware of the importance of filing return with correct information.

[ANITA BHADRA]

Ramakrishnan Sir

Your query title is GTA Credit .

You can take credit for payment to intermediary ( including amount paid to GTA ) for his agency services and your intermediary can take credit for amount paid to GTA .

As per section 24(vii) of CGST Act , registration is mandatory for agents, so intermediary is supposed to be registered and eligible to get credit for GTA payment .

You should not be concerned for GTA credit eligibility clause.

Experts are requested to correct me , if I am wrong .

Regards

CA Anita Bhadra

[CSSANJAY MALHOTRA]

All my friends have shared correct views. ITC is eligible on intermediary services and GTA part not to be considered as services of intermediary is charged to 18% in this case.

AI Summary

Input tax credit eligibility for intermediary services: manufacturers may claim credit for GST charged by intermediary when compliance conditions met. Input tax credit is available on GST charged by an intermediary who pays GTA invoices and invoices the purchaser for transport and agency services, provided the intermediary is registered, discharges the tax on his invoice, files correct GST returns, and the invoice details uploaded by the supplier match the purchaser's records; payments to the GTA are creditable to the intermediary, not the purchaser.