TaxTMI 
TaxTMI 
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.
RCM-GTA-5% - ITC ELIGIBILITY
25 Sep 2024 
6 Replies 
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Input tax credit eligibility for reverse charge on goods transport agency services affirmed despite supplier opting reduced rate
The core point: since 18.7.22 a GTA may elect a reduced-rate forward charge option without taking ITC, whereas previously GTAs paid at a higher rate with ITC; recipient entitlement to input tax credit depends on the recipient's taxable supplies and statutory ITC conditions rather than the supplier's chosen rate, and recipients remain generally eligible to claim ITC if conditions are met, though specific factual uncertainty may warrant an advance ruling. (AI Summary)
The core point: since 18.7.22 a GTA may elect a reduced-rate forward charge option without taking ITC, whereas previously GTAs paid at a higher rate with ITC; recipient entitlement to input tax credit depends on the recipient's taxable supplies and statutory ITC conditions rather than the supplier's chosen rate, and recipients remain generally eligible to claim ITC if conditions are met, though specific factual uncertainty may warrant an advance ruling. (AI Summary)