rounak parekh (Self employed Business) (29 Points)
04 December 2019My query is we sell steel with GST invoice on ex-premises terms. Hence whatever freight charges/transportation applies on such goods, we include in sales invoice, at 18% GST, same as our goods GST rate.
Whatever transportation charges we apply in sales invoice to customer, same are paid to transporter.
Question is do i need to pay RCM @ 5% on such transportation as i am already applying GST @ 18% on such charges in sales invoice to the customer?
CA Ankit R Momaya
(Partner at Bhat Momaya & Associates)
(2319 Points)
Replied 04 December 2019
In case your transporter is GTA, you are liable to pay tax under RCM. However, you can avail ITC of the tax paid under RCM in the same month itself.
Iyengar Prasad
(17 Points)
Replied 04 December 2019
rounak parekh
(Self employed Business)
(29 Points)
Replied 04 December 2019
Sir the transporters are individual vehicle owners unregistered in GST. We apply transportation charges in sales invoice (at 18% GST) and pay them in cash with entry in cash voucher.
Raksha
(Student CA Final )
(397 Points)
Replied 04 December 2019
CAclubindia
