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Gta - gst

sakthi (Business consultant ) (137 Points)

12 July 2018

Hi Friends,

I have a basic doubt in GST GTA - Reverse Charge mechanism. I am receiving a frieght / transportation bill from Regd. person and he is charging 2.5% CGST and 2.5% SGST in the bill. Since the GTA is comes under RCM, how will i treat this input GST in tally while entering? While in RCM the GTA is comes under GST 12%, shall i consider this 2.5% SGST & 2.5% CGST as cost? If so the tranporter also has paid as output in their account, correct? How to account and how to treat? Pl advice.

rgds

sakthi

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2 Replies

Pratik Surve (Assistant Professor ) (571 Points)
Replied 12 July 2018

IF HE GTA THEN HE CANNOT CHARGE THE GST ON FREIGHT. IN SUCH CASE THE SERVICE RECEIVER HAS TO CHARGE RCM.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 12 July 2018

A Goods Transport Agent has following Three Options or we may say three situations :

1. Providing Services to Specified Category Recipient – Applicability of Reverse Charge as per Notification No. 13/2017- Central Tax (Rate) Dt : 28.06.2017

2. Services to other than Specified Category Recipient – Forward Charge @ 5% without ITC – Rate of GST as per Notification No. 11/2017-Central Tax (Rate) Dt : 28th June, 2017

3. Forward Charging with ITC Availment – Forward Charge @ 12% availing ITC – Notification No. 20/2017 – Central Tax (Rate) dated 22ndAugust, 2017

So Yes GTA can charge 5% GST & recepient has to do RCM on the same .
As the Recepient will not get the ITC on same he can include GST charge by GTA in his Cost of freight