GST Rate and RCM

This query is : Resolved

Devraj Dhwiti (Querist)
Follow

30 November 2019 Dear Expert,

My query is - A GST Registered Company has hired an Unregistered Travel Agent for transportation of Employees and Workers in 2 category i.e. AC Cab and Non-AC Cab. Agent sends invoice to company on a monthly basis without GST since he is unregistered.

Please advise whether the company has to pay GST on RCM basis.
If Yes, please help me with the GST rate with ITC claim.
and GST rate with No ITC

Also, please provide reference of section, notifications, circulars or other base to support the solution. Thank you.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

01 December 2019 5% GST applicable under RCM.

Devraj Dhwiti

Devraj Dhwiti (Querist)
Follow

02 December 2019 Thank you very much sir.

Please confirm whether we can claim ITC for such 5% GST.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

02 December 2019 No ITC can be claimed on transportation of employees.

Devraj Dhwiti

Devraj Dhwiti (Querist)
Follow

02 December 2019 Thank you very much Sir....

Devraj Dhwiti

Devraj Dhwiti (Querist)
Follow

07 December 2019 Hi Sir, Good Morning,
If the company is in works contract business and using the cab / vehicle hire service for Client and their officials - to take them to Site/Place to verify the project's status.

Please confirm whether this is also a RCM case of 5% GST.
and
Can we claim ITC in this case????

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

07 December 2019 Yes this is also RCM and no ITC can be claimed.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now