Issuance of invoice by gta
This query is : Resolved
20 June 2018
Is it possible for a registered transporter to issue two different invoices to two different recipients out of which GST charged on one and under RCM to second party?
21 June 2018
In case of GTA services, the GTA service provider has an option to collect tax @12% in the tax invoice
(Supplier of GTA services can claim ITC on his inward supply).
In case he opt not to charge in the invoice (no credit to GTA supplier on his inward supplies),
the recipient has to pay tax under RCM and claim ITC of such tax.
Now the question is whether GTA service provider can avail both the options simultaneously?
As per the notification there is no restriction in collecting tax in one invoice , and not collecting tax in
another invoice (RCM).
The challenge in doing that practice is determining the eligible credit. Since in the first option credit is allowed but in the second option credit is not allowed to supplier of GTA services.
(Supplier of GTA services can claim ITC on his inward supply).
In case he opt not to charge in the invoice (no credit to GTA supplier on his inward supplies),
the recipient has to pay tax under RCM and claim ITC of such tax.
Now the question is whether GTA service provider can avail both the options simultaneously?
As per the notification there is no restriction in collecting tax in one invoice , and not collecting tax in
another invoice (RCM).
The challenge in doing that practice is determining the eligible credit. Since in the first option credit is allowed but in the second option credit is not allowed to supplier of GTA services.
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21 June 2018
Thank you mam,you said that There is no restriction but there is nothing which clearly allows to issue different invoices?
21 June 2018
As per the notification 20/2017- once the option is exercised to pay 12%, he has to charge 12% for all his supplies.
21 June 2018
As per GTA activities if the GTA opt Exempted supply (5%) slab then he can't charge 12% for his GTA services...
But.,
he can charge his other services as per GST rates...
But.,
he can charge his other services as per GST rates...
21 June 2018
Notification 20/2017 -Central Tax rate that prescribes 6% GST rate for GTA's under forward clearly states that "Provided that the goods transport agency opting to pay Central tax @ 6% under this entry shall, thenceforth, be liable to pay Central tax @ 6% on all the services of GTA supplied by it." This leaves no option for the GTA to opt for differential rates.
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21 June 2018
Vishakha ji,
what about in case of charging GST @ 5%?
what about in case of charging GST @ 5%?
21 June 2018
It is implied for the aforesaid condition that you have to choose either of the rates.
21 June 2018
I agree with Ms.Vishaka, any one option has to be exercised. Both the options are not possible as per the Notification no.20/2017.
21 June 2018
I think you have taken me wrong. I mean in any other case where he choose to tax 5%, then can he issue tax invoice charging Tax and Invoice under RCM simultaneously?
22 June 2018
Simultaneously cannot be done. He has to choose either
(a) to charge 12% in all his invoices or
(b) Should not charge any tax in his invoice, the recipient should pay tax @5% RCM.
for few invoices (with respect to GTA services) option (a), few invoice option (b) cannot be taken
by same registered person as per the said notification.
(a) to charge 12% in all his invoices or
(b) Should not charge any tax in his invoice, the recipient should pay tax @5% RCM.
for few invoices (with respect to GTA services) option (a), few invoice option (b) cannot be taken
by same registered person as per the said notification.
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