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

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.