Freight reimbursement issue gst applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2017 Dear Experts,
Being supplier we have paid Rs. 835 freight to GTA who is unregistered on the behalf of our vendor for transportation of goods. However we have also disclose the 835 in invoice & charged GST thereon as applicable on goods.
My query is :- since we have charged GST on Freight in invoice the buyer will reimburse the same to us. But as we have directly paid Freight so do we also need to pay 5% GST on 835 under RCM,

Thanks & Regards
Alok Kumar

Sumeet

Sumeet (Expert)
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22 September 2017 Yes. As per the provisions of GST Laws, Recipient for the purpose of Transportation services by a GTA is the person making payment to GTA for transportation of Goods. Whether such charges are reimbursed subsequently is irrelevant. So the person making payment to GTA has to pay GST on RCM.

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2017 OK?
Sir we have charged 18% GST on freight in invoice!
But under RCM we have to pay only 5% No ITC available for the same,

Pls tell me how we will consider this freight amount & GST thereof in GSTR-1 goods value 178300 freight 835 total taxable value 179135@18% GST 32244 total 211379,
How we will disclose the freight & tax in GSTR-1 whether the freight value & tax thereof will be subsumed in sale portion or will be shown separately

Sumeet

Sumeet (Expert)
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22 September 2017 You can show total amount of 179135 under Taxable Value. No need to show separately.

Dibin Divyakumar

Dibin Divyakumar (Expert)
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22 September 2017 Also for the RCM 5% you pay, You can avail it as ITC in Next month.

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2017 But sir I have heard that 5% GST paid under RCM is not allowed for ITC?

Pls clarify the same

Sumeet

Sumeet (Expert)
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22 September 2017 No ITC is for GTA, who charge GST at 5% on Bills for supplies made to unregistered persons. Recipient can however claim credit on tax paid on RCM.