Gst paid under reverse charge against lorry freight bill

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mahendra sahoo (Querist)

14 August 2017 please solve this GST issue
we are the registered person in bangalore. Sir we purchased one truck goods from Surat to bangalore , we paid lorry freight to a unregistered person rs 12000/- by cash. So we comes under RCM of GST. when we paid GST under RCM. what tax we charged at the time of payment i mean IGST or CGST/SGST. If paid GST under RCM , can we claim ITC
please clarify by me

Arjun Gupta

Arjun Gupta (Expert)

14 August 2017 Transportation Services provided by Unregistered GTA to a Registered Dealer shall attract Reverse Charge under GST and tax shall be paid by the Registered Dealer @5%. Moreover, the Regd Dealer/ Service Recipient is eligible to take ITC of such tax paid under reverse Charge.
On the other hand, IGST shall become payable in your present scenario.

mahendra sahoo

mahendra sahoo (Querist)

14 August 2017 sir, before one month we read GST kowledge books, we can not claim ITC of such GTA services
and more things as per GST rules we should pay GST as per place of supply, as am here receipient only, here what is place of supply?

Arjun Gupta

Arjun Gupta (Expert)

15 August 2017 As per Notification No. 11/2017-Central Tax (Rate)-
Description of Service Condition
(iii) Services of goods transport agency Provided that credit of input tax charged on goods
(GTA) in relation to transportation of goods and services used in supplying the service has not
(including used household goods for personal bot been taken.
use).
Now, according to Explanation (iv),
Wherever a rate has been prescribed in this notification subject to the condition that credit of input tax charged on goods or services used in supplying the service has not been taken, it shall mean that,-
(a) credit of input tax charged on goods or services used exclusively in supplying such service has not been taken; and
(b) credit of input tax charged on goods or services used partly for supplying such service and partly for effecting other supplies eligible for input tax credits, is reversed as if supply of such service is an exempt supply and attracts provisions of sub-section
(2) of section 17 of the Central Goods and Services Tax Act, 2017 and the rules made
thereunder.

Therefore, from the above text, it is concluded that when any Goods Transport Agency provides services of transportation of goods by road to any person registered under the act, then GTA can not avail the ITC of input, input services used for providing such services. However, person (service recipient) liable to pay GST under Reverse Charge under this case, can avail ITC of GST paid.

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Arjun Gupta

Arjun Gupta (Expert)

15 August 2017 You can refer N/N 11/2017 from the link mentioned below, as the text of the act above is not alligned properly.
https://www.cbec.gov.in/resources//htdocs-cbec/gst/Notification11-CGST.pdf

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