5% WITH NO ITC - WHO WILL NOT TAKE ITC

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....% WITH NO ITC - WHO WILL NOT TAKE ITC<br> Query (Issue) Started By: - MUTHUKUMARAN K Dated:- 26-9-2025 Last Reply Date:- 5-10-2025 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>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 Reply By Sadanan....

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....d Bulbule: The Reply: GTA cannot avail  ITC since he has opted to charge 5%. Importer can avail ITC of the 5% GST charged, if eligible. Reply By MUTHUKUMARAN K: The Reply: Dear Sir thanks for your valuable reply, what are the benefit for GTA raise invoice 5% to Importer, because importer is ready to pay 12% or 18%. but GTA only taken a ITC on rent , stationaory , Telephone charges and Syste....

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....m Purchase. please advise we bill to importer is 18% is better sir. with regards K.Muthu Kumaran 9500098134     Reply By Sadanand Bulbule: The Reply: Since your input expenses are claimable and the importer agrees to pay 18% tax, it is better to bill at 18% rather than 5%. This enusres full ITC utilisation and no loss in revenue. Nevertheless, 5% GTA rate is simpler compliance. No need ....

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....of to maintain ITC chain on outward supply. Choice is yours. Reply By MUTHUKUMARAN K: The Reply: Thanks for valuable reply Reply By Shilpi Jain: The Reply: GTA cannot take ITC. If transporter has significant ITC (vehicles, etc.) then he should consider charging 18% GST. For importer, ITC will depend on what is he using the goods for - taxable or exempt supply. Reply By KASTURI SETHI: The Re....

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....ply: Yes, Sir. There is no requirement of&nbsp; one-to-one correlation among inputs, input services and outward supply&nbsp;of goods (manufactured) & services in GST regime.<br> Discussion Forum - Knowledge Sharing ....