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Gst of gta forward charged for notified person

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Md a k fayas asad

1 Points Joined November 2017

Hi, we are a startup company, has a GSTIN and fall under notified person category, a Registered GTA gave service to our company and charged 5% under forward charge basis and Final amount after same paid through bank transfer. Should i have to pay RCM on the basic amount seperately?

If the GTA doesn't pay our forward charge to govt, How can i receive the ITC?.. Pls advise

Replies (1)

CA Mayank A Jain

Chartered Accountant in Practice

1260 Points Joined June 2019

Yes, you will have to pay GST under RCM as he has charged you GST at a rate less than 12%.
You can take credit of tax charged by the GTA and also the tax paid by you under reverse charge.
However, if the GTA does not pay the tax to the government then you may be required to reverse the credit along with interest.