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Gst ITC in fright and forwarding

Yasir (article assistant ) (466 Points)

18 October 2023

We take the service of Safeexpress private limited for Forwarding goods form one state to another state
safeexress charged fare 5000 and gst 900
what is the entry in tally and how to claim ITC of rs 900

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10 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14807 Points)
Replied 18 October 2023

Is Safeexpress pvt Ltd GTA ( Goods Transport Agency) ?. if yes , are you paying GST under RCM ? please clarify.

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Yasir (article assistant ) (466 Points)
Replied 18 October 2023

Yes Safeexpress is GTA and gst bill also shown in gstr 2b

prasad Nilugal ( GST Practitioner & Accounts ) (14807 Points)
Replied 18 October 2023

Are you paying GST under RCM ? , because for GTA RCM is applicable , if GTA is not opted to pay GST under Forward charged .

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 18 October 2023

Dear Mr Prasad Nilugal Sir,

please check the Tax Value...

prasad Nilugal ( GST Practitioner & Accounts ) (14807 Points)
Replied 18 October 2023

Yes , I have notice that 18 % IGST ( 5000 *18% = 900 ) has been charged , however in case of GTA its either 5% ( No ITC ) or 12% ( with ITC ) in case of RCM, So that clarification also needed .

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 18 October 2023

Originally posted by : prasad Nilugal
	Yes , I have notice that 18 % IGST ( 5000 *18% = 900 ) has been charged , however in case of GTA its either 5% ( No ITC ) or 12% ( with ITC ) in case of RCM, So that clarification also needed .

So,

If Safe Express charged 18% GST then its not under RCM basis. Right...??!

prasad Nilugal ( GST Practitioner & Accounts ) (14807 Points)
Replied 18 October 2023

Not clerified by the qurest it's under RCM or under forward charge .

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 18 October 2023

Okay Sir...

prasad Nilugal ( GST Practitioner & Accounts ) (14807 Points)
Replied 18 October 2023

Raja PM Sir

We still inform him regarding entries under RCM and forward charge .

Entries under RCM

Transparent Charges A/c Dr
Input IGST RCM A/c Dr
To Output IGST RCM A/c Cr
To Safeexpress Pvt Ltd A/c Cr
( Transport charges payable under RCM )

RCM payment entry

Output IGST RCM A/c Dr
To Bank A/c Cr
( payment made under RCM )

----------------------------------

Entries under forward charges

Transport Charges A/c Dr
Input IGST A/c Dr
To Safeexpress Pvt Ltd A/c Cr
( Transport charges payable)

payment entry

Safeexpress Pvt Ltd A/c Dr
To Bank A/c Cr
(! payment entry ) .