RCM-GTA-5% - ITC ELIGIBILITY

[Govinda Raju]

Hi,

Can we have clarification as to RCM paid at 5% on GTA is eligible ITC or ineligible ITC.

on the other hand if GTA entity pays GST at 5% and appearing in GSTR-2B - are we eligible for ITC credit.

AI Summary

Eligibility of Input Tax Credit on GTA Services Under Reverse Charge Mechanism Clarified; Consider Consulting AAR for Specific Issues. A query was raised regarding the eligibility of Input Tax Credit (ITC) on Goods Transport Agency (GTA) services under the Reverse Charge Mechanism (RCM) at a 5% GST rate. A participant clarified that from July 18, 2022, GTA could opt to pay 5% GST without ITC under the forward charge mechanism. Before this date, the option was to pay 12% GST with ITC. Another participant suggested that the querist consult the Authority for Advance Rulings (AAR) for specific issues, despite it being costly. It was concluded that ITC eligibility depends on providing taxable supplies, not the tax rate paid.