TaxTMI 
TaxTMI 
Dear Sir / Madam,
Transporter collect and pay 5% GST on transport charges from importers.Who will not take ITC Importer or Transporter? please explain.
with regards
K.Muthu Kumaran
9500098134
5% WITH NO ITC - WHO WILL NOT TAKE ITC
26 Sep 2025 
6 Replies 
1287 Views Asked by
Input tax credit: transporter charging reduced GST rate cannot claim ITC; recipient may claim ITC if eligible and using service for taxable supplies.
A transporter who elects to charge the concessional 5% GST on GTA services cannot claim Input Tax Credit; an importer charged that GST may claim ITC if eligible and using the service for taxable supplies. If the transporter has substantial input credits and the importer agrees to pay the higher rate, charging the standard GST rate to enable ITC recovery is commercially preferable, whereas the 5% option offers simpler compliance without maintaining an ITC chain. (AI Summary)
A transporter who elects to charge the concessional 5% GST on GTA services cannot claim Input Tax Credit; an importer charged that GST may claim ITC if eligible and using the service for taxable supplies. If the transporter has substantial input credits and the importer agrees to pay the higher rate, charging the standard GST rate to enable ITC recovery is commercially preferable, whereas the 5% option offers simpler compliance without maintaining an ITC chain. (AI Summary)