GST Payment on Reverse charge for GTA

[Anil Kumar]

Dear Sir,

We are manufacturer and also do job work of distillation of solvents. All our materials supplied are through tanker and finished goods are also transported through tankers. earlier when service tax was in force we used to pay the GTA on reverse charge mechanism. My question now is whether we need to pay the GST on GTA transportation, if yes under reverse charge mechanism or at what percentage and if I pay, by when can I take credit of the paid GTA amount.

Thanks and Regards

Anil Kumar M

[Alkesh Jani]

Sir, In terms of Notification No.11/2017 -CT (Rates) Sl.No. 9(iii) and at Para (iii) of Notification No. 20/2017 -CT (rates) amending Notification No.11/2017 - CT (Rates) shall be taken into consideration i.e to say that You are to pay Tax @5% (CGST+SGST) under RCM and ITC is not available. if the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it. However, ITC is not available in this case also, in terms of Section 17(5) (a) (ii)

[KASTURI SETHI]

Well explained by Sh.Alkesh Jani, Ji. No room left for further clarification.

[Ganeshan Kalyani]

As a manufacturer you will bave to pay GST @5% on GTA. Input tax credit is also eligible.

the view expresses by my collegue friend is for goods transport agency.

[CSSANJAY MALHOTRA]

I support views of Sh. Ganeshan ji.

[KASTURI SETHI]

Sh.CS Sanjay Malhotra Ji, I agree with you. Thus it implies that I also agree with Sh.Ganeshan Kalyani Ji.

[Anil Kumar]

Dear Sir,

One more doubt is if it is within state it is CGST 2.5% and SGST 2.5%, and ITC credit can be taken immediately next month of the payment.

Thank you all for the replies.

Regards

Anil Kumar M

[Praveen Nair]

Hi Anil, You can pay GST on RCM and can take of ITC in the same month.

[Ganeshan Kalyani]

yes , if within State transaction then CGST + SGST . and yes credit can be taken in the same month.

[Anil Kumar]

Dear Sir

Thank you all for the clarifications.

Regards

Anil

[Ganeshan Kalyani]

Thanks Sri Sanjay Sir and Sri Kasturi Sir.

[YAGAY and SUN]

In this scenario the only conditions is the service provider had not availed the ITC on capital goods, inputs and on input services.

AI Summary

GST on goods transport services may be payable under reverse charge, with differing views on input tax credit entitlement.
Manufacturers receiving tanker transport from a goods transport agency may be required to pay GST on those services under the reverse charge mechanism. One interpretation of the notifications treats the recipient as liable to discharge tax under reverse charge and disallows input tax credit; other contributors take the view that while reverse charge applies, the recipient can claim ITC, including in the same month for intrastate supplies, subject to whether the provider has availed ITC on its inputs and capital goods.