TaxTMI 
TaxTMI 
GST Input Credit
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....ST Input Credit<br> Query (Issue) Started By: - Ethirajan Parthasarathy Dated:- 19-11-2019 Last Reply Date:- 20-11-2019 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>A goods transporter has charged ₹ 600/- for transport of goods & has also issued consignment note. Though the amount charged is below 750/- (threshold limit prescribed), the registered person pays tax under RCM. Is he ....
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....eligible to take input credit. Reply By KASTURI SETHI: The Reply: Yes. He is eligible to avail ITC under RCM. Reply By Ganeshan Kalyani: The Reply: Yes, input tax credit is allowed on GTA. Reply By Ethirajan Parthasarathy: The Reply: I am thankful to the response by the experts. I regret a mistake has crept in my query which has altered the very concept. My query is about ITC on freight cha....
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....rges (which is not supported by consignment note) paid under RCM. Please see my rephrased query : A goods transporter has charged ₹ 600/- for transport of goods & has not issued consignment note. Though the amount charged is below 750/- (threshold limit prescribed), the registered person pays tax under RCM. Is he eligible to take input credit. Reply By PAWAN KUMAR: The Reply: Dear Sir, A....
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....s per my view, since goods transporter has not issued consignment notes and as per definition under the gst law, it is not under GTA hence not liable for GST under RCM. Secondly if any case it cover under GTA, then, gross amount charged for consignment is under ₹ 750, hence it is exempt. in both the cases above, as per my view, GST will not payable. Reply By KASTURI SETHI: The Reply: Wit....
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....h the rephrasing of query, the whole scenario has changed. I support the views of Sh.Pawan Kumar Ji. Reply By SIVARAMA KUMAR: The Reply: Only a registered dealer is eligible to claim ITC on RCM. if used for his taxable business or furtherance of business activity.The threshold limit of 750 per consignee is exempted only in the hands of the supplier of service,which you were not aware. The provis....
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....ions of the act casts the liability to pay tax under RCM for the recipient of service ,and no provisions restrict claim of ITC paid under RCM paid on exempted supplies. My view is that you would still be eligible to claim ITC., Reply By Ganeshan Kalyani: The Reply: To claim ITC the outward supply should be taxable. RCM paid on GTA should be toward taxable supply I.e. supply of taxable goods.<br....
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