Case -:
GTA has choosed 5% GST Rate with No ITC and charged Transportation Charges along with GST @ 5% from Registered Recipient.
Registered Recipient availed ITC of such 5% GST charged by GTA.
Please answer to following Questions based on aforesaid case.
Q1- Is Registered Recipient liable under reverse charge ? (GTA already charged 5% GST on Invoice)
Q2 - if Answer to Q1 is 'yes' then what will be the GST rate for Registered Recipient under reverse charge ?
6 Replies
Sanjay Rana
(56 Points)
Replied 15 August 2020
Q1. If the recepient fall within the specified category, then mandatorily GST on GTA is to be paid under RCM.
ansh 99
(229 Points)
Replied 16 August 2020
Dear Himanshu gupta
Registered recipient is not liable to pay tax under rcm..
there is simple logic for this , why would to pay govt twice for same supply ..
hope u got ur answer
thanks.
stay safe n healthy
Registered recipient is not liable to pay tax under rcm..
there is simple logic for this , why would to pay govt twice for same supply ..
hope u got ur answer
thanks.
stay safe n healthy
Jay Chichani
(131 Points)
Replied 16 August 2020
Registered Person is still liable to pay GST on RCM basis since it is not mentioned anywhere that GTA charged @ 5% then recipient is not liable to pay on RCM basis
Q 1. & Q2 GST collected by GTA which is void if it collected GST @ 5% since it is better for recipient to save from litigation process go for pay RCM @ 5%. ITC is not available to claim for you on that part.
Since If GTA pay tax @ 12 % then recipient claim ITC on it.
Q 1. & Q2 GST collected by GTA which is void if it collected GST @ 5% since it is better for recipient to save from litigation process go for pay RCM @ 5%. ITC is not available to claim for you on that part.
Since If GTA pay tax @ 12 % then recipient claim ITC on it.
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 16 August 2020
Yes, As per notification, RCM on GTA services not applicable only if GTA opts to pay the tax on forwards charge @ 12%
In your case as GTA charges only 5% (not 12%) unde FCM, you are liable to pay RCM @ 5% for GTA services availed.
In your case as GTA charges only 5% (not 12%) unde FCM, you are liable to pay RCM @ 5% for GTA services availed.
Shivam RC
(Student)
(23683 Points)
Replied 16 August 2020
Under GST, the GTA has two options :
(1). To opt for Reverse Charge Mechanism ( RCM ) under Section 9(3) of the CGST Act 2017 read with Notification No. 13/2017 - Central Tax ( Rate ), dated 28th June 2017 and the Recipient will be liable to pay tax on RCM basis @ 5% and can claim ITC thereon on the basis of Self Invoice. Note that the GTA is not eligible to claim ITC.
(2). To opt for FORWARD CHARGE MECHANISM ( FCM ) and collect and pay GST @ 12% with the Benefit of ITC. ( Notification No. 11/2017 - Central Tax ( Rate ), dated 28th June 2017 ).
(1). To opt for Reverse Charge Mechanism ( RCM ) under Section 9(3) of the CGST Act 2017 read with Notification No. 13/2017 - Central Tax ( Rate ), dated 28th June 2017 and the Recipient will be liable to pay tax on RCM basis @ 5% and can claim ITC thereon on the basis of Self Invoice. Note that the GTA is not eligible to claim ITC.
(2). To opt for FORWARD CHARGE MECHANISM ( FCM ) and collect and pay GST @ 12% with the Benefit of ITC. ( Notification No. 11/2017 - Central Tax ( Rate ), dated 28th June 2017 ).
ansh 99
(229 Points)
Replied 16 August 2020
Dear Himanshu gupta ..
i was not correct above ..
recipient is liable to pay tax on rcm basis if gta charges 5%
and gst rate for recipient will be 5%.
i was not correct above ..
recipient is liable to pay tax on rcm basis if gta charges 5%
and gst rate for recipient will be 5%.
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