Q. 318 My client does business in trading of paper.
While doing transportation of goods, he receives some of Lorry Receipts as GTA and others as not GTA. Not GTA means the transporter is not issuing any kind of consignment note, but collects freight.
Since the transport charges are more than Rs.750/- and the supplier is not collecting any GST on their services of transportation, he is paying GST under Reverse Charge Mechanism.
My client wants to pay GST @12% instead of 5% and wants to claim the input by adjusting the amount so paid against the Output Tax.
Can his thinking is correct or not?
Can he claim Input by paying the GST @ 12%?

Please resolve my issue?

Ans. The rates of 12% with ITC and 5% without ITC is applicable to the GTA if he pays the tax under forward charge mechanism. But if the recipient is paying the tax under reverse charge mechanism, then he can pay the tax @5% and can claim the ITC.

Q. 317 purchase tractor in Private no HR26 it is my work soil removal in construction house i get orders from builders can we take input?

Ans. You can avail ITC from the day you have started using it for business purpose.

Q. 316 Request to inform Rate of Gst for carriage inward and outward under RCM the local transporter use to submit LR copies also?

Ans. 5% Rate will be applicable on GTA service when recipient are liable to discharge the Tax under RCM.