Gta tax 5% and reverse charge

Recipient is required to pay GST @ 5% on Reverse Charge Mechanism and of course the Recipient is allowed to take Input Tax Credit (ITC) subject to general eligibility criterion.

Thanks Rawat for your reply

A registered GTA operator can opt for not to claim ITC. 

yeaah GTA can opt for either (1) Pay GST @ 5% ,in this case GTA is not allowed to take ITC. (2) PAY gst @ 12%,tn this case GTA is allowed to take itc.However once option to pay GST @ 12% IS Exercised and itc is availed than other option cannot be exercised.

Thanks Rawat,

If GTA opt to pay 5%, in this scenario also reverse charge is applicable?  

No,Reverse charge is applicable only if GTA provides services to the specified category recipients. than recipients are liable to pay GST @ 5%.if GTA provides services to other than specified category recipients than GTA have 2option (5 or 12%).

specified category persons (a) any factory registered under or governed by the Factories Act, 1948(63 of 1948);or (b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or (c) any co-operative society established by or under any law; or (d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or (e) any body corporate established, by or under any law; or (f) any partnership firm whether registered or not under any law including association of persons; or (g) any casual taxable person.

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. 

 

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.

 

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.

 

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?.