ITC FOR GTA

[Shahnawaz Alam]

R/sir I am registered GTA opted forward charge (FCM) .we provide service to cement industries @12%gst we are also providing exempted services to govt for transportation of agriculture products wheat and paddy .sir we have taken itc on purchase of truck. Sir can we avail 100% ITC either we have to reverse ITC for part of transportation of agriculture products

[Ganeshan Kalyani]

Sec. 17(2) states that ITC only in proportionate to taxable supplies is eligible. So, you will have to reverse ITC to the extent of transportation of agriculture products.

[umeshkumar jhawar]

I agree with Ganeshan Kalyani, here according to Section 17(2) ITC to be reversed if Goods or services partly used for Taxable supply or partly for Exempt Supply.

Amount of ITC to be reversed to be caluclated as per Rule 43.

[Shahnawaz Alam]

R/sir we have 30 trucks and ITC claimed on truck is not used for exempt services.For exempt service rest trucks are used

[Padmanathan KV]

Where any Truck is exclusively used for taxable supply, full ITC is eligible.

Where any Truck is exclusively used for exempt supply, full ITC is ineligible.

Where any Truck is used partially for taxable and partially for exempt supply, proportionate ITC has to be reversed under Rule 43 on the basis of Turnover of taxable and exempt supply.

Please maintain detailed log book for each truck properly as it is highly prone to dispute by department.

AI Summary

GTA Must Reverse ITC Proportionally for Exempt Services; Full ITC Eligible for Taxable-Only Truck Use Under GST Act Section 17(2). A registered Goods Transport Agency (GTA) providing services to cement industries at a 12% GST rate and exempt services for transporting agricultural products inquired about availing 100% Input Tax Credit (ITC) on truck purchases. Respondents clarified that under Section 17(2) of the GST Act, ITC must be reversed proportionally for exempt services. If trucks are used exclusively for taxable supplies, full ITC is eligible, while trucks used for exempt services are not. For trucks used for both, ITC must be reversed proportionally per Rule 43, based on the turnover of taxable and exempt supplies. Maintaining detailed logs is advised.