RCM on transportation by road
Kailash Bhati (11 Points)
24 June 2018
Do we have to pay RCM If service (transportation) is interstate and transporter is unregistered?
15 Replies
saurav
(Tax practicner)
(117 Points)
Replied 24 June 2018
no. as rcm on unregistered is suspended till. 30thof jun but if transporter is register and he raise rcm bill then you should pay rcm
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 24 June 2018
Yes ,RCM is compulsory If Transportation services provided By GTA (who issue bilty)
Even though GTA is uregisterd.
As per Notification 5 /2017 CT GTA are exempted to obtain registration
Even though GTA is uregisterd.
As per Notification 5 /2017 CT GTA are exempted to obtain registration
saurav
(Tax practicner)
(117 Points)
Replied 24 June 2018
Reverse Charge if the GTA Is Unregistered
As per Notification No.8/2017-Central Tax (Rate) dated 28th June 2017, intra-state supplies of goods or services or both received by a registered person from any unregistered supplier, is exempted from GST if it does not exceed Rs. 5,000 in a day.
If the transport charges (from an unregistered GTA) are less than Rs. 5,000 per day then no GST will be payable.
As per Notification No.8/2017-Central Tax (Rate) dated 28th June 2017, intra-state supplies of goods or services or both received by a registered person from any unregistered supplier, is exempted from GST if it does not exceed Rs. 5,000 in a day.
If the transport charges (from an unregistered GTA) are less than Rs. 5,000 per day then no GST will be payable.
Vinod Babu
(24196 Points)
Replied 24 June 2018
Yes, RCM is applicable if transportation services are unregistered.
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 24 June 2018
Mr.Saurav
GTA services fall under section 9(3) & the Notification you are quoting is services from URD which cover under Section 9(4) , which is deferred till 30/06/18 By the Notification 10/2018 CT (r)
So RCM on GTA services is mandatory if single bity exceeds 750/- & 1500/- for composit bilty
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 24 June 2018
RCM not applicable if the transporter is not GTA. As per GST Road Transport service is exempted...
If the Service provider is GTA then RCM applicable and Receipients will be pay Tax under RCM basis...
If the Service provider is GTA then RCM applicable and Receipients will be pay Tax under RCM basis...
Kailash Bhati
(11 Points)
Replied 24 June 2018
Raja sir, but the department is saying we have to pay RCM even it's URD,
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 24 June 2018
Condition only based on GTA...
Not for URD or Rd in the above said Supply of Services...
Not for URD or Rd in the above said Supply of Services...
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 24 June 2018
Yes , even though GTA is Unregistered RCM is mandatory on recipient End
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 24 June 2018
As per my view.,
Definition of GTA is not under GST. But, The definition is based on Service Tax...
So,
You can refer service tax related GTA rule or article...
Definition of GTA is not under GST. But, The definition is based on Service Tax...
So,
You can refer service tax related GTA rule or article...
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 24 June 2018
https://www.avalara.com/in/en/blog/2017/09/applicability-of-gst-on-goods-transport-agencies.H T M L
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