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Reverse charge on transport charge

17 May 2018

What is limit of transportation charges above which Reverse charge is applicable..Please also inform whether it is applicable from April 2018 or July 2018..Thanks

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6 Replies

CA Padmasri Manyam (CA in Practice) (1340 Points)
Replied 17 May 2018

Your query is with respect to Goods transport services or normal transportation services?

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Dayananda Kakade (Deputy Manager -Finance) (328 Points)
Replied 17 May 2018

Only GTA (Goods transport agency) is convered under RCM.. There is no threshold limit for RCM. Tax to be paid from Rs.1. RCM from on GTA is there from 1st July 2017

Prem Kewalramani (292 Points)
Replied 17 May 2018

We are paying Transport charges...The transporter is not levying any GST...HE is having GST no but no gst charged separately.Then we are paying gst on freight @ 12 % and claiming reverse charge input credit in next return..

Dayananda Kakade (Deputy Manager -Finance) (328 Points)
Replied 17 May 2018

It should 5% GST not 12% recheck once.

Prem Kewalramani (292 Points)
Replied 17 May 2018

sir if we have to claim reverse charge credit after payment then I think it is 12 percent...please clarify and help...in what cases 5 percent is levied...thanks