Vidyadhar Hegde (Article Assistant) (21 Points)
24 July 2021My friend is a dealer in animal feeds which is NIL rated supply.
He will buy from a manufacturer (intra-state) and hire a lorry (unregistered transporter) for transportation of feeds from the manufacturer location to his godown. The hire charges will be around Rs.10,000 to Rs.12,000 per trip.
So he needs to pay GST under RCM?
If yes, whether he can claim ITC and get a refund on ITC later?
Deepak Kumar
(791 Points)
Replied 25 July 2021
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 25 July 2021
Anshuman Basu
(account -GST)
(1556 Points)
Replied 25 July 2021
Vidyadhar Hegde
(Article Assistant)
(21 Points)
Replied 25 July 2021
Then can we claim ITC ? and can we get refund?
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 25 July 2021
RCM will be applicable if you are registered under GST and you are taking services from a GTA
Since your outward supply is exempt ITC will not be available and therefore no refund.
Vidyadhar Hegde
(Article Assistant)
(21 Points)
Replied 25 July 2021
Sir,
"Anyone who provides consignment note for goods delivery is treated as GTA and a mere bill is not consignment note"
In the given case told earlier. The individual lorry owner cum driver won't provide consignment note and not even bill. Just he will collect money based on the kilometre and load capacity of the vehicle.
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 26 July 2021
That is why I said Rcm applicable only if GTA.
In your case the lorry owner doesn't seems to be GTA.
It is exempt.
No need to pay gst
CAclubindia
