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
GST on Goods Transport Agency Services: 5% under Reverse Charge Mechanism; ITC Only if Central Tax Paid at 6% A manufacturer inquires about the applicability of GST on Goods Transport Agency (GTA) services under the reverse charge mechanism (RCM). Previously, service tax was paid under RCM, and the question is whether GST should be paid similarly. Responses indicate that GST is payable at 5% under RCM, but input tax credit (ITC) is not available unless the goods transport agency opts to pay central tax at 6%. Some replies clarify that within-state transactions involve CGST and SGST, and ITC can be claimed in the same month. The discussion emphasizes the conditions under which ITC is applicable. (AI Summary)
TaxTMI 
TaxTMI 
