GTA Services and ITC

[Kaustubh Karandikar]

The Goods Transport Agency (GTA) had charged 5% GST in the invoice against transportation charges to XYZ Ltd. XYZ had claimed input tax credit against this. 1) Whether XYZ is eligible to claim such ITC? 2) If not, what is the correct procedure? I my view, XYZ can claim ITC only when the GTA is charging 12% GST. But no reverse charge to XYZ if GTA charging 5% GST. Views of the experts please.

AI Summary

XYZ Ltd. Can Claim ITC on GTA Services, Regardless of 5% or 12% GST Charge, Experts Confirm A discussion on a forum addressed whether XYZ Ltd. can claim input tax credit (ITC) when the Goods Transport Agency (GTA) charges 5% GST on transportation services. The initial query suggested that ITC is only claimable if GTA charges 12% GST, and not under reverse charge if 5% is charged. Shilpi Jain clarified that XYZ could recover the 5% tax from GTA and pay it to the department, or still claim ITC under GST definitions. Ganeshan Kalyani confirmed that ITC is claimable regardless of whether GTA charges 5% or 12% GST. Other participants agreed with these interpretations.