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Rcm from purchase from gta

MR. BASAK (ACCOUNTANT) (107 Points)

08 December 2017

IS REVERSE CHARGE APPLICABLE FROM PURCHASE FROM GTA (REGISTERED OR UNREGISTERED).

IF APPLICABLE , CAN I TAKE CREDIT IN THE SAME MONTH OR PAY TAX IN THE MONTH AND TAKE CREDIT IN NEXT MONTH?

I AM LITTLE BIT CONFUSED ABOUNT SECTION 9(3) AND 9(4) OF CGST ACT.

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11 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 08 December 2017

What you mean "Purchase From GTA"...?
What you purchase from GTA.?

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Thirumalaisami Thangavel (41 Points)
Replied 08 December 2017

The GTA service provider may be registered or unregistered.
As a service receipient from GTA you need to pay tax on RCM basis and take the ITC paid as RCM in same month.
RCM Tax rate for GTA is 5%.

Thirumalaisami Thangavel (41 Points)
Replied 08 December 2017

Section 9(4) deals the purchase from unregistered supplier and it is suspended till 31st Mar 17.

Thirumalaisami Thangavel (41 Points)
Replied 08 December 2017

Read as 31st Mar 18

Srivathsan (Chartered Accountant) (6 Points)
Replied 08 December 2017

S . 9(3) us notified RCM
You should pay the same in current month and take the ITC in next month only

S.9(4) is w.r.t GST on transaction with unregistered dealer on RCM basis . It has been suspended till 31 Mar 2018

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Akhil Rajeev Reddy (Article Assistant) (121 Points)
Replied 09 December 2017

Yes, services received from GTA will be liable to pay under RCM. The relaxation provided by the government is only for S. 9(4), supply of services by GTA is falling under 9(3). Hence these services are liable under RCM. The rate of tax applicable on the same is 5%. Recipient is eligible to take credit of the same in the same month of payment of tax

Sumit Kothari (200 Points)
Replied 09 December 2017

If GTA is unregistered and interstate transactions . I will be pay CGST and SGST or igst please clear

Thirumalaisami Thangavel (41 Points)
Replied 09 December 2017

IGST - Based on place of supply.
Receipient and supplier are in different states.
Forward or Reverse charge Tax rate (CGST+SGST OR IGST) to be based on place of supply.

MR. BASAK (ACCOUNTANT) (107 Points)
Replied 09 December 2017

i mean to say service received from gta

IS REVERSE CHARGE APPLICABLE FROM SERVICE RECEIVED FROM GTA (REGISTERED OR UNREGISTERED). IF APPLICABLE , CAN I TAKE CREDIT IN THE SAME MONTH OR PAY TAX IN THE MONTH AND TAKE CREDIT IN NEXT MONTH? I AM LITTLE BIT CONFUSED ABOUNT SECTION 9(3) AND 9(4) OF CGST AC

satya swaroop (Student CA Final ) (22 Points)
Replied 09 December 2017

GST on Rent a Cab service is an ineligible credit. Then in such a case, Please tell me the eligibility of GST paid on RCM basis on Rent a Cab service as Input credit ( GST was paid under RCM as the Service provider is unregistered )

It was paid before the notification relaxing payment of RCM on services/goods from unregistered party, was issued.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 09 December 2017

Originally posted by : MR. BASAK
	i mean to say service received from gta IS REVERSE CHARGE APPLICABLE FROM SERVICE RECEIVED FROM GTA (REGISTERED OR UNREGISTERED). IF APPLICABLE , CAN I TAKE CREDIT IN THE SAME MONTH OR PAY TAX IN THE MONTH AND TAKE CREDIT IN NEXT MONTH? I AM LITTLE BIT CONFUSED ABOUNT SECTION 9(3) AND 9(4) OF CGST AC

Yes... You ll be pay Tax under RCM basis for GTA services if he registered or unregistered... You ll be pay @ cash on the transaction month and You ll take ITC on next month... GTA services under section 9(3) of CGST act. Also the GTA related definition in Service Tax and it's following in GST... Section 9(4) is differed from section 9(3). Section 9(4) says Unregister dealers who are except under the definition of sec 9(3)...