Shashi (Accounts Executive) (27 Points)
04 March 2019Hi can any one guide me in following doubt.
In case of GTA there ar two options, one is to pay tax @ 5% without ITC and another option is to pay tax @ 12% with ITC.
It has been notified applicability of reverse charge u/s 9(3), if tax not paid @ 6% (i.e. 12%).
In plain reading reverse charge is applicable if tax not paid @ 12 on GTA services. GTA has to py tax @ 5%.
What is the tax rate applicable to recipient of service under RCM.
CA.Pankaj Rawat
(Chartered Accountant)
(1381 Points)
Replied 04 March 2019
Shashi
(Accounts Executive)
(27 Points)
Replied 04 March 2019
Thanks Rawat for your reply
A registered GTA operator can opt for not to claim ITC.
CA.Pankaj Rawat
(Chartered Accountant)
(1381 Points)
Replied 04 March 2019
Shashi
(Accounts Executive)
(27 Points)
Replied 04 March 2019
Thanks Rawat,
If GTA opt to pay 5%, in this scenario also reverse charge is applicable?
CA.Pankaj Rawat
(Chartered Accountant)
(1381 Points)
Replied 04 March 2019
CA.Pankaj Rawat
(Chartered Accountant)
(1381 Points)
Replied 04 March 2019
Brijesh S
(Student )
(70 Points)
Replied 04 March 2019
Dear Shashi,
This is my opinion for the query,
RCM is dealt with Section 9(3) and 9(4) of the CGST Act and Section 5(3) and 5(4) of the IGST Act.
Notification 13/2017 brought GTA services into the ambit of RCM.
Notification 11/2017 later amended by Notification 20/2017 , provided the rate of GST under RCM.
On a fair reading of the law, we understand as below:
As per Section 2(98) of the CGST Act 2017.
“reverse charge” means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act.
Based on the above we understand that RCM brings all responsibility of GST onto Service Recipient as though he is the provider of service.
Hence, if GST is paid under RCM, we need to refer to Notification 13 , and Notification 20 and the following construction is arrived:
Option 1: Pay GST at 5% under RCM and do not claim Input of the same.
Option 2: Pay GST at 12% under RCM and Claim Input of the same.
Also note the relaxation limit of Rs.750/1500.
Shahadat Khan
(5 Points)
Replied 07 September 2019
| Originally posted by : Brijesh S | ||
 |
Dear Shashi, This is my opinion for the query, RCM is dealt with Section 9(3) and 9(4) of the CGST Act and Section 5(3) and 5(4) of the IGST Act. Notification 13/2017 brought GTA services into the ambit of RCM. Notification 11/2017 later amended by Notification 20/2017 , provided the rate of GST under RCM. On a fair reading of the law, we understand as below: As per Section 2(98) of the CGST Act 2017. “reverse charge” means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act. Based on the above we understand that RCM brings all responsibility of GST onto Service Recipient as though he is the provider of service. Hence, if GST is paid under RCM, we need to refer to Notification 13 , and Notification 20 and the following construction is arrived: Option 1: Pay GST at 5% under RCM and do not claim Input of the same. Option 2: Pay GST at 12% under RCM and Claim Input of the same. Also note the relaxation limit of Rs.750/1500. |
 |
Shahadat Khan
(5 Points)
Replied 07 September 2019
| Originally posted by : Brijesh S | ||
|
Dear Shashi, This is my opinion for the query, RCM is dealt with Section 9(3) and 9(4) of the CGST Act and Section 5(3) and 5(4) of the IGST Act. Notification 13/2017 brought GTA services into the ambit of RCM. Notification 11/2017 later amended by Notification 20/2017 , provided the rate of GST under RCM. On a fair reading of the law, we understand as below: As per Section 2(98) of the CGST Act 2017. “reverse charge” means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act. Based on the above we understand that RCM brings all responsibility of GST onto Service Recipient as though he is the provider of service. Hence, if GST is paid under RCM, we need to refer to Notification 13 , and Notification 20 and the following construction is arrived: Option 1: Pay GST at 5% under RCM and do not claim Input of the same. Option 2: Pay GST at 12% under RCM and Claim Input of the same. Also note the relaxation limit of Rs.750/1500. |
|
Nilesh Pednekar
(2 Points)
Replied 13 December 2019
We are register company, hiring bus to pick & drop employees. Transporter not charges any GST on bill. whether we need to pay GST under RCM?.
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