RCM-GTA-5% - ITC ELIGIBILITY, Goods and Services Tax - GST

[Govinda Raju]

Hi,

Can we have clarification as to RCM paid at 5% on GTA is eligible ITC or ineligible ITC.

on the other hand if GTA entity pays GST at 5% and appearing in GSTR-2B - are we eligible for ITC credit.

Posts / Replies

[KASTURI SETHI]

Sh.Govinda Raju Ji,

W.e.f. 18.7.22, the option to pay GST @ 5% without ITC under forward charge mechanism by GTA was introduced. Prior to 18.7.22, the only option was to pay GST @ 12 % with ITC by GTA under FCM.

For more details see Issue ID 117765 dated 22.1.22 which was raised by you.

[Sadanand Bulbule]

Dear Sir

It appears the dark clouds surrounding this issue are not yet dispersed, despite thoughtful clarification.

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

Sir, If the dark clouds still persist, then the querist may apply to the jurisdictional AAR for further clarification on a specific problem/issue.

[Sadanand Bulbule]

Dear Sir

AAR is an expensive and time consuming process and the final product is the same.