Hello all
I have some queries regarding entry for transportation charges incurred on purchase of raw material from out of state.
1. Under which situation reverse charge mechanism should be applicable to transportation charges.
2. Under which account which make payment of gst (i.e under service tax we made payment with reference to pan no of transporter) if transporter doesn't have gst registration number.
3. What should be entry for transportation charges and gst payment
Thanks in advance
If you are a registered person, then in every case of transportation of goods, you are liable for reverse charge.
Definitely the Transporter will not have GSTIN as he is not required to get registered under GST law. In case of reverse charge, there is no need to mention GSTIN of the supplier of service not even PAN.
Accounting entries will be like this:-
Freight charges a/c Dr
To Z Transporter a/c
To TDS a/c
Tax paid under reverse charge a/c Dr
To Output GST a/c
Output GST a/c Dr
To Bank a/c
In next month claim this tax as ITC
Input GST a/c Dr
To Tax paid under reverse charge a/c
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