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Reverse charge on transportation.

RCM 469 views 4 replies

Prem Kewalramani

292 Points Posted on 18 May 2018

My doubts :-
1.whether reverse charge for transportation is applicable from April 2018.

2.If GTA is regd in GST but not charged any tax..whether I have to pay 5 percent tax as reverse charge and claimITC as reverse charge.

3.Whether this tax is to be paid in cash or can be adjusted from ITC credit available if any..

4..Whether this amount paid in cash is to be claimed in ITC in same month or in next month.

5.Rate of 12 percent reverse charges on transport charge applicable in which cases...?

Please guide and help me.Thanks

Replies (4)

CA Mukesh Soni

Practicing Chartered Accountant

55 Points Posted on 18 May 2018

1. yes
2.yes and ITC can be claimed
3.only cash and can't be adjusted against ITC
4.same month possible or you can also take in next. no issue
5.no 12% RCM. 12% applicable if GTA charge on invoice itself.

Prem Kewalramani

292 Points Posted on 18 May 2018

sir that means if GTA is registered and not charged any Gst then for claiming ITC credit I have to pay @ 12 percent

Vijay Shiroya Adv

64 Points Posted on 18 May 2018

no. u have to pay first cash as rcm @ 5% and then u can claim itc in same month..

Pankaj Rawat

GST Practitioner

55067 Points Posted on 19 May 2018

If GTA charge GST 12 % in that case recepeint need not have to do RCM , infact can avail ITC on same,. As per Notification 20 /2017 CT (R)

Other then above recipient is liable to do rcm on GTA services as per notification 13/2017 CT (R)