13 September 2017
1 I am fertilizers dealer. i pay unloading charges (Hamali) to unregistered persons. is 5000 exempt criteria applicable on it.? can I liable to pay GST on that expenses through RCM?
2 i pay transportation to GTA but supplier company reimburse this amount to me through invoice or credit note, then am i liable to pay GST through RCM on that transportation?
13 September 2017
1. Unloading Charges paid to unregistered person attracts RCM under GST. Exemption of 5000 per day is however available for the same. If payments for the day exceeds 5000 you will be liable to pay GST under RCM for whole amount of payment.
2. RCM on payment to GTA is applicable to any person who makes payment to transporter. In your case since you are making payment to GTA you are liable to pay GST under RCM even if the payment is subsequently reimbursed by your supplier
14 September 2017
Central Government has notified that in following cases GST on Transportation of Goods through GTA will be exempt (Hence no RCM):
1.Goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed 1500. 2.Goods, where consideration charged for transportation of all such goods for a single consignee does not exceed 750.
The first situation is where goods are transported in a single carriage and the total freight does not exceed Rs. 1500/- in total. In such case there is exemption from GST. Second situation covers goods transported by a GTA for a particular consignee. In such a situation if the gross amount charged for transport of goods is Rs.750/- or less; then that consignment will be exempted from GST.
In simple words, Where the gross amount charged for a consignee is less than Rs.750/-, there is no problem since the goods transporter will raise the bill to consignee accordingly and he will know that there is no need to pay the tax. The problem arises only when the gross amount charged on the consignments in a single carriage is less than Rs.1500/-, particularly when consignee’s charges are more than Rs.750/-. Hence in a specific case where consignee’s charges are more than Rs.750/- and the gross charges including all other consignments are less than Rs.1500/- , consignee has to ask the transporter to indicate the same in the bill.
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