RCM paid on GTA services @5% is eligible to claim ITC

[BHAVYA PETHRU]

Dear Experts,

We have been paying the Tax under RCM @5% for GTA service , whether we are eligible to take the Input tax credit of the same.

awaited for your respose

thanks & regards,

Bhavya.P

[Rajagopalan Ranganathan]

Sir,

Since you are paying 5% tax on GTA service under RCM as receiver of the service you can take the credit.

[DR.MARIAPPAN GOVINDARAJAN]

You are eligible to take the credit.

[Manoj Agarwal]

Yes, you are eligible to avail ITC paid under RCM on GTA service after payment of tax, if the input service (GTA) is used in providing taxable supply.

Regards,

Adv. Manoj Agarwal, GSTsathi, Rourkela

AI Summary

Input tax credit on reverse charge GTA services is available when tax is paid and service is used for taxable supplies.
Payment of tax under the reverse charge mechanism on GTA services by the recipient permits claiming of input tax credit once the tax liability is discharged, provided the GTA service is used in making taxable supplies by the recipient.