Question19: With reference to and example posted today in mail kindly clarify payment of tax under RCM by a regd entity @5% with no ITC
Does it mean payer is ineligible for ITC or transporter is ineligible '

Answer According to notification no. 11/2017- CT / Notification No. 08/2017- Integrated Tax (Rate),dt. 28-06-2017 GTA service is taxable @ 5% subject to condition that ITC on goods or service used for supplying such service has not taken by transporter.

In illustration we used No ITC for transporter.

whereas recipient is eligible for tax paid on GTA services received. (Reply dt. 16/3/2018)