sir, my client has firm purchase chemical from Gujarat and received to tamilnadu. receipent has paid to pay freight rs. 26000 but my firm gst portal gst2a display such transporter supply attract reverse charge, can i pay freight at rcm. how much rate sir ?
14 Replies
sanjith kotni
(Articled assistant)
(663 Points)
Replied 16 December 2019
If the transporter is not paying under forward charge @ 5% then u r liable to pay GST under RCM @ 5% and this is not eligible for input credit
sujith kumar dasa
(banglore)
(1496 Points)
Replied 16 December 2019
If receiver of goods is liable for payment of freight to GTA, then GST under RCM @ 5% is also liable for receiver of goods. He can make RCM payment and avail input credit of same. If the GTA is givong GST No. Of supplier of goods instead of receiver of goods in GSTR-1, request him to change the same as GST is applicable in hands of person who is paying the freight.
srikumar
(audit staff)
(1203 Points)
Replied 16 December 2019
So rcm 5 percent paid and itc available or not sir
Anup Agarwal
(1184 Points)
Replied 16 December 2019
As per Section 9(3) of CGST Act 2017 you will have to pay GST under RCM @ 5% and you can avail ITC in the same month.
srikumar
(audit staff)
(1203 Points)
Replied 16 December 2019
Sir, someone said, rcm 5 percent no itc and pay rcm 12 percent avail itc next month,
so which 5 no itc or 12 percent itc available?
so which 5 no itc or 12 percent itc available?
Anup Agarwal
(1184 Points)
Replied 16 December 2019
These rates are applicable to transporter.
let me clarify you-
1. If Transporter charges 5% GST on its invoice, then he can not claim ITC.
2. If Transporter charges 12% GST on its Invoice, then he can claim ITC.
3. Or he can provoke burden of GST payment on recipient under RCM.
Now in your query, you are recipient of transportation service and not the transporter, You are paying GST under RCM. Hence as per Section 9(3) of CGST Act 2017 you will have to pay under RCM at the rate of 5% and you can avail Input Tax Credit (ITC)
let me clarify you-
1. If Transporter charges 5% GST on its invoice, then he can not claim ITC.
2. If Transporter charges 12% GST on its Invoice, then he can claim ITC.
3. Or he can provoke burden of GST payment on recipient under RCM.
Now in your query, you are recipient of transportation service and not the transporter, You are paying GST under RCM. Hence as per Section 9(3) of CGST Act 2017 you will have to pay under RCM at the rate of 5% and you can avail Input Tax Credit (ITC)
srikumar
(audit staff)
(1203 Points)
Replied 16 December 2019
Very thanks anup sir, pls send u r mail id sir, any doubt i will contact mail sir pls
Anup Agarwal
(1184 Points)
Replied 16 December 2019
Your welcome
my E-mail id-
anupagarwal34 @ gmail.com
my E-mail id-
anupagarwal34 @ gmail.com
srikumar
(audit staff)
(1203 Points)
Replied 16 December 2019
Rcm 5 percent is igst or cgst and sgst sir
Anup Agarwal
(1184 Points)
Replied 16 December 2019
As per Section 12 of IGST Act 2017 If Recipient of service is registered person, then place of supply will be location of that registered person, and in that case CGSG & SGST shall be charged.
In your case
1.if you are registered in Tamilnadu, and Transporter is of Gujarat, then IGST will be applicable.
2. If you are registered in Gujarat and Transporter is of Gujarat then CGST & CGST will be charged.
In your case
1.if you are registered in Tamilnadu, and Transporter is of Gujarat, then IGST will be applicable.
2. If you are registered in Gujarat and Transporter is of Gujarat then CGST & CGST will be charged.
venkoba shivapur
(78 Points)
Replied 17 December 2019
Sir, transport er submitted bills "GST PAID BY RECIPIENT UNDER RCM" but party Uploaded Show in our GSTR2A I take ITC ?
Anup Agarwal
(1184 Points)
Replied 17 December 2019
If Transporter has provoked to pay recipient under RCM then recipient will pay under RCM and he can take ITC.
if Transporter itself has paid GST, then it will be shown under recipient's GSTR-2A, it this case recipient can take ITC.
if Transporter itself has paid GST, then it will be shown under recipient's GSTR-2A, it this case recipient can take ITC.
Lakhmichand D Khandelwal
(service)
(27 Points)
Replied 17 December 2019
Hello anup sir, do we need to report GTA rcm liability in gstr1.
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