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Freight charges in bill of entry - gst rcm

JAGANATHAN R ACMA, SAP(Fi-Co) (Manager Accounts and Finance) (915 Points)

15 June 2018

Hi.,

The freight mentioned in Bill of entry., can u confirm is it eligilbe to pay the GST against the RCM

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7 Replies

yash varshney (Pro) (248 Points)
Replied 15 June 2018

Yes the recipient must pay GST under reverse charge i. e 2.5% cgst 2.5% sgst

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rani (sr accountant) (68 Points)
Replied 15 June 2018

whether this amt paid gst or 2.5% each can be taken ITC

yash varshney (Pro) (248 Points)
Replied 15 June 2018

Yes this can be taken as itc

Sohail Ali (18 Points)
Replied 15 June 2018

Dear sir
in someone's query I came to know 5% we can't take ITC we can take ITC on 12% which is right sir please clarrify

CA Padmasri Manyam (CA in Practice) (1340 Points)
Replied 15 June 2018

Supply of GTA services alone is covered under RCM.

GTA service provider has an option to collect tax @ 12%. If GST is not charged in the invoice, then only the tax liability shifts to the recipient of GTA services.

Tax rate applicable in such case is 5% (if GTA service provider not claimed ITC), 12% (if he claimed ITC).

Therefore, the restriction of claiming ITC is for GTA service provider not for the recipient of such service.

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yash varshney (Pro) (248 Points)
Replied 15 June 2018

f Service Receiver pays GST under RCM

Service receiver can always avail ITC on GST paid under RCM.

CS M Pota (Company Secreatary) (3186 Points)
Replied 16 June 2018

Freight charges shown in the Bill of Entry attracts IGST.When an Importer pays customs duty he pays IGST along with Customs duty ie IGST is included in the duty structure of Customs duty.The IGST is payable on agreegate of Assesseble value ie CIF value+ Basic Customs duty+Social Welfare Surcharge. The importer afterwards claim IGST benefit as per GST Act. So in my view separate GST is reqiured to be paid like inland freight by RCM.