GST INPUT ON GTA BILL WITH 5% INVOICE

[X Y]

XYZ Private Limited, a registered person under GST, received Tax Invoice from GTA with 5% tax. Whether XYZ P Ltd, is liable to pay RCM on its own or pay it to GTA as per his invoice and take Input credit. Whether XYX P Ltd is eligible to take ITC on transaction where RCM is applicable. Please reply.

AI Summary

XYZ P Ltd Can Claim ITC if GTA Uses Forward Charge; No Need for Reverse Charge Payment XYZ Private Limited, a registered GST entity, received a tax invoice from a Goods Transport Agency (GTA) with a 5% tax rate. The query concerns whether XYZ P Ltd should pay the tax under the reverse charge mechanism (RCM) or to the GTA as per the invoice and whether they can claim input tax credit (ITC). Responses clarify that if the GTA opts for a forward charge mechanism (FCM) and charges GST on the invoice, XYZ P Ltd is not required to pay under RCM and can claim ITC, provided other legal conditions are met.