CLAIMING OF ITC ON GTA SERVICES

[KERAGODEGOPALARAO ANANTHARAO]

WE ARE RECIPIENT OF GTA SERVICES. ONE OF PROVIDER IS CHARGING GST AT 5%, ANOTHER SERVICE PROVIDER CHARGING GST AT 12%.. CAN I CLAIM IPT CREDIT ON INVOICES ISSUED BY BOTH SERVICE PROVIDERS?

AI Summary

Claiming ITC on GTA Services: Understand Conditions for 5% RCM and 12% Forward Charge GST Rates A recipient of Goods Transport Agency (GTA) services inquired about claiming Input Tax Credit (ITC) on invoices from service providers charging GST at different rates-5% and 12%. Respondents clarified that ITC can be claimed on both, but with conditions. For 5% GST, the recipient must pay under the Reverse Charge Mechanism (RCM) and can claim credit within the legal time frame. For 12% GST, the Forward Charge Mechanism applies, allowing direct credit claims. Issues with incorrect invoice disclosures in GSTR-1 were noted, advising recipients to ensure correct tax payments and claim credits accordingly.