Can ITC be claimed on GTA?

Can ITC be claimed on GTA?

Only services provided by a GTA are taxable under GST. The GTA service supplieris not entitled to take ITC on input services availed by him if tax is being charged @ 5% (2.5% CGST + 2.5% SGST). In case the GTA service supplierhires any means of transport to provide his output service, no GST is payable on such inputs.

What is input tax credit in services?

What is input tax credit? Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount. Here’s how: When you buy a product/service from a registered dealer you pay taxes on the purchase.

Is GTA required to register under service tax?

9.3 Whether it is compulsory for a recipient of GTA service to take registration for service tax? Yes, if reverse charge is applicable, service recipient becomes liable to pay service tax and section 69(1) of the Act mandates that every person liable to pay tax shall obtain service tax registration.

How do I claim a refund on my input tax credit?

Step 1: Login to the GST portal, go to ‘Services’ > ‘Refunds’ > ‘Application for Refund’. Step 2: Select the refund type and choose whether or not to file NIL refund application. Select the refund type as ‘Refund on account of ITC accumulated due to inverted tax structure’.

Can we claim ITC on RCM?

The ITC is not available for the reverse charge payment to the authority. The composition scheme registered individuals also come under the reverse charge, well there will be no credit of RCM be availed. The reverse charge mechanism is applicable to payments made in advance also.

Is ITC available on transport?

ITC is not available for Motor vehicles used to transport persons, having a seating capacity of less than or equal to 13 persons (including the driver). However, ITC is available if the seating capacity of such motor vehicles exceeds 13 persons. Further, ITC is not available on vessels and aircrafts.

What is the time limit for availing input tax credit?

within 180 days
If the recipient of *goods or services or both does not pay the invoice amount to the supplier within 180 days of the date of invoice, the ITC availed already on that particular invoice will have to be added to the output tax liability and the interest shall have to be paid also.

What is the meaning of input tax credit with example?

Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs. Say, you are a manufacturer – tax payable on output (FINAL PRODUCT) is Rs 450 tax paid on input (PURCHASES) is Rs 300 You can claim INPUT CREDIT of Rs 300 and you only need to deposit Rs 150 in taxes.

When to take Cenvat credit for GTA service tax?

Taken Cenvat credit of Service Tax on GTA service on the basis of Input Invoices (Excise) . Taking credit on the basis of Input Invoices (Excise) when service tax paid by the manufacturer-supplier on GTA service of inward transportation of goods upto factory.

Can You claim 5% tax on GTA service?

Sir, Since you are paying 5% tax on GTA service under RCM as receiver of the service you can take the credit. 2Dated: 6-9-2018 By:- DR.MARIAPPAN GOVINDARAJAN

Which is taxable service provided by GTA in India?

Service provided by the GTA for transportation of goods on road is a taxable supply for business, so tax paid by the recipient under reverse charge basis on such supply will be eligible for input tax credit.

When did service tax come into effect in GTA?

Thereafter by the Finance (No. 2) Act, 2004 Service Tax has been imposed on Transport of Goods by Road service rendered by any goods transport agency with effect from 10-09-2004. However, the levy was deferred till further notice again in view of transporters strike. The Government thereafter constituted a committee to study the matter.