If Serive provider has voluntary registration under GST, in such case RCM is applicable or not? Service receiver is also registered under GST
18 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 26 September 2017
Above said way RCM can't applicable....
RCM applicable a registered dealer receive supplies from unregistered dealer....
RCM applicable a registered dealer receive supplies from unregistered dealer....
Manjiri Shende
(Accounts Executive)
(46 Points)
Replied 26 September 2017
For unregistered dealer only RCM is applicable?
Manjiri Shende
(Accounts Executive)
(46 Points)
Replied 26 September 2017
For unregistered dealer only RCM is applicable?
Manjiri Shende
(Accounts Executive)
(46 Points)
Replied 26 September 2017
If turnover of Service provider is below 20lacs, then also RCM is applicable?
Chandar
(Student)
(43 Points)
Replied 26 September 2017
yes,
he is not liable to get registration. But the service receiver will pay under RCM and take the input credit of the same.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 26 September 2017
Registered dealer to Registered dealer - RCM not applicable....
Unregistered dealer to Unregistered dealer - RCM not applicable...
Registered dealer to Unregistered Dealer - RCM not applicable.....
Unregistered dealer to Registered Dealer - RCM applicable to Registered dealer. The Registered dealer ll be pay Tax under RCM basis.....
Unregistered dealer to Unregistered dealer - RCM not applicable...
Registered dealer to Unregistered Dealer - RCM not applicable.....
Unregistered dealer to Registered Dealer - RCM applicable to Registered dealer. The Registered dealer ll be pay Tax under RCM basis.....
SKumar
(Manager)
(385 Points)
Replied 26 September 2017
MS,
If GTA is registered, please first check if goods being transported fall in Specifcally exempted list or not, vide Notification no.12/2017-Central Tax (Rate) dated
28.06.2017 (sr.no.21). If yes- then no GST applicable on service provider or receiver.
If goods donot fall in that list then GTA can :
a) give Consignment note mentioning SAC 996791 and that RCM liability is on receiver or
b) Issue invoice with SAC 996791 with @ 5%, but mark Reverse Charge as yes.
We receive GTA service from VRL and they have voluntary GST Regn. in all states.
They issue Consignment Note on "To-pay basis" or Money receipt but they don't charge GST.
C Note/Money Receipt mentions Consignor & Consignee (my name) & GSTIN, SAC code and also specifies who pays/paid for the shipment, and on whom the GST liability is there.
If sender pays for shipment, they become recipient of service and need to do RCM.
If receiver pays for shipment, they become recipient of service and need to do RCM.
I trust I have set all doubts to rest.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 26 September 2017
Less than 20lakhs :
The threshold of turnover does not matter if a person is voluntarily registered / Turn over less than 20lakhs.
All provisions of GST Act will apply to a registered person. So, the above said registered person is liable to pay GST under RCM.
The threshold of turnover does not matter if a person is voluntarily registered / Turn over less than 20lakhs.
All provisions of GST Act will apply to a registered person. So, the above said registered person is liable to pay GST under RCM.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 26 September 2017
@ SKumar.,
I think you are wrongly post here....?!! 🤔🤔🤔
I think you are wrongly post here....?!! 🤔🤔🤔
SKumar
(Manager)
(385 Points)
Replied 26 September 2017
Raja Sir,
I am quoting adverbatim from CBEC note on GTA. (Copy attached)
"Thus in cases where services of GTA are availed by the above categories of persons in the taxable territory the GTA supplier has the option to pay tax (and avail ITC) @ 12% (6% CGST + 6% SGST);and if the GTA does not avail this option, the liability to pay GST will fall on the recipients. In all other cases where the
recipients do not fall in the categories mentioned above, the liability will be on the supplierof GTA services."
~~~~~x~~~~~~
To summarize, Registered GTA has the option to choose to charge GST on Forward basis or not.
My transporter (VRL) is not charging GST on Forward basis from those 7 categories of persons. So liability is @ 5% on Recipient of service (on me).
Attached File : 2123704 20170926130423 goods transport service.pdf downloaded: 217 times
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 26 September 2017
Yes...
Good Attachment. But, it's not related this query you know...
Good Attachment. But, it's not related this query you know...
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 26 September 2017
Dear RAJA P M Sir.,
How to understan GTA in GST...?
Avinash Gharge
(54 Points)
Replied 26 September 2017
Can i get any goverment notification for rcm is compulsery for unragisterb delars whos trashhold limit is under 20lakh ???
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 26 September 2017
Mr. Avinash Gharge.,
Please see the link... You can get clarity...
https://economictimes.indiatimes.com/news/economy/policy/gst-rs-20-lakh-registration-exemption-not-for-inter-state-traders/articleshow/59476364.cms
Please see the link... You can get clarity...
https://economictimes.indiatimes.com/news/economy/policy/gst-rs-20-lakh-registration-exemption-not-for-inter-state-traders/articleshow/59476364.cms
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