Seller of goods registered under GST but buyer and Goods Transport Agency are URD.
Buyer paid freight at the time of getting delivery of material.
Whether RCM applicable on freight and if yes who will liable to pay.
9 Replies
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 06 May 2020
If buyer was liable to pay freight then seller not liable to pay gst on rcm
sunil arora
(54 Points)
Replied 06 May 2020
RCM is applicable on freight @ 5% and recipient will be liable to pay the same
recipient must be registered u/s 24
recipient must be registered u/s 24
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 06 May 2020
@ PARWAL CONSULTANTS.,
As per Your query rcm not applicable.
As per Your query rcm not applicable.
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4515 Points)
Replied 06 May 2020
Do not agree with any of the above answers.
Section 24(iii) requires any person liable to pay under RCM to be compulsorily registered under GST (irrespective of turnover).
Therefore, if the buyer has paid the freight then he is considered as the recipient of services. Refer Explanation (a) to notification 13/2017-CT(R).
Therefore, buyer requires to register under GST and discharge taxes under RCM.
As he is registered now, all other provisions would be applicable, i.e. outward supply taxes, inward supply credit, penalty, notices etc.
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4515 Points)
Replied 06 May 2020
Yes Sunil missed your response. Anyway have provided additional details in my response too.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 06 May 2020
@ Mr CA Akshay Hiregange.,
Can You give some more details for the sec 24(iii) of CGST act...
I mean want explanation of "persons who are required to pay tax under reverse charge;"
here who is the person...?
Can You give some more details for the sec 24(iii) of CGST act...
I mean want explanation of "persons who are required to pay tax under reverse charge;"
here who is the person...?
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 06 May 2020
@ CA Akshay
GTA services to URD is also eligible for exemptions subject to certain conditions (Entry 21A)
At any rate seller will not be liable to pay GST on RCM in this case.
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4515 Points)
Replied 07 May 2020
Persons required to pay under reverse charge are the ones who are mentioned in the last column in notification 13/2017-CT(R).
@ Mr. Zafar has correctly mentioned, I had completed missed this, thank you.
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