Itc on rcm paid on gta services

This query is : Resolved

CA SANDESH MAHIPAL (Querist)
Follow

04 October 2017 Hii X, a registered proprietor, engaged in business of exempted and taxable goods. He purchases exempted goods worht 5 Lakh and pays 1 lakh for transportation to gta. Q1. Whether RCM is to be paid @5% by X? Q2. Whether ITC of this RCM can be availed and this can be used for other taxable supplies? Q3. when this rcm is to be paid to govt.? please suggest. thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

04 October 2017 1 Yes RCM is to be paid on freight at 5%.
2 No ITC can be claimed on it as it is for transport of exempt goods.
3 RCM is to be paid on or before 20th of next month.