Rcm in case of gta

This query is : Resolved

Puja Sharma (Querist)
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01 December 2018 A assessee is paying Rs. 80,000 via fuel card(He will recharge the fuel card and give it to transporter) and balance Rs. 20,000 via cheque to a GTA for Transportation via Road.
Q1: RCM will apply on Rs. 20,000 in GST but what will be the GST implication and accounting treatment of Rs. 80,000?
Q2: If the assessee gets cash back of Rs. 200 on the fuel recharge whether the same will be treated as an income of the assessee?Else whether the cashback should be reduced from the feight expenses.
Q3: In case to be reduced from Freight, GST will be paid on the full payment in respect of the GTA without deducting the cash back?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 December 2018 1 80,000 will be considered as freight charges and accounted. RCM payable on it.
2 Cash back reduced from freight expenses.
3 GST payable after deducting Cash back.