is reverse charge to be paid by composition tax payers ?
if payable at how much % it is to be paid?
If the transporter is GTA, whether registered or unregistered, then RCM shall be paid by composition dealer as well u/s 9(3) of the CGST Act.
Rule 5(1)(d) of the CGST Rules, specifies that a composition dealer shall pay tax under sub-section (3) or sub-section (4) of section 9 on inward supply of goods or services or both.
Notification No. 13/2017- Central Tax (Rate) says that the recipient should be any person registered under the GST Act for applicability of RCM u/s 9(3) of the GST Act.
But in the end of the said notification, it is being said that, the words and expressions used and not defined in this notification but defined in the CGST Act, the IGST Act, and the UTGST Act shall have the same meanings as assigned to them in those Acts.
Now, as per sec. 2(94) of the CGST Act, ‘registered person’ means a person who is registered under section 25 but does not include a person having a Unique Identity Number.
So, this means registered person does not include a composition dealer u/s 10 of the CGST Act.
But, sec. 10(1) of the CGST Act, also says that, “…but subject to the provisions of sub-sections (3) and (4) of section 9…”
This means that while complying with one statutory provision, another provision relating to the subject-matter also must be complied with.
So, this means that RCM tax shall be paid by composition dealer as well.
If the transporter is non-GTA, then no GST for both inter and intra state.
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