TaxTMI 
TaxTMI 
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.
GST INPUT ON GTA BILL WITH 5% INVOICE
03 Dec 2024 
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GST reverse charge: recipient not liable when transporter charges GST under forward charge; input credit claimable.
When a Goods Transport Agency elects the forward charge option and issues a tax invoice charging GST, the recipient need not pay tax under the reverse charge mechanism and may claim input tax credit subject to usual ITC conditions. The GTA must file the prescribed declaration to opt for forward charge. If the GTA does not charge under forward charge, the recipient remains liable under RCM and may claim ITC only if statutory conditions are met. (AI Summary)
When a Goods Transport Agency elects the forward charge option and issues a tax invoice charging GST, the recipient need not pay tax under the reverse charge mechanism and may claim input tax credit subject to usual ITC conditions. The GTA must file the prescribed declaration to opt for forward charge. If the GTA does not charge under forward charge, the recipient remains liable under RCM and may claim ITC only if statutory conditions are met. (AI Summary)