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

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.