GST rate on freight paid under RCM
This query is : Open
Rakesh Sharma
(Querist)
24 July 2017
respected experts,
We are giving freight of rs. 52500/- to local union (no vehicle is in the name of union). The union hires the vehicle and send it to our premises with bilty in the name of union. I think as per GST act it is not a GTA.
Sir, what will be rate of GST in above case & ITC?
please advise me sir. It's very very urgent.
regards,
Rakesh Sharma
CA Sukesh Bhatia
(Expert)
24 July 2017
Basically, GTA is providing service to Union and Union is recovering freight charges from you. GST is paid by Union under RCM @5%
CA Sukesh Bhatia
(Expert)
24 July 2017
Basically, GTA is providing service to Union and Union is recovering freight charges from you. GST is paid by Union under RCM @5%
CA Sukesh Bhatia
(Expert)
24 July 2017
Is Union recovering same @5% from you?
Rakesh Sharma
(Querist)
24 July 2017
no sir, union is unregistered
Rakesh Sharma
(Querist)
24 July 2017
Sir, please reply. Its urgent. I have to deposit 5% or 18% under RCM
Rakesh Sharma
(Querist)
24 July 2017
Sir, Please reply to help me
CA Sukesh Bhatia
(Expert)
24 July 2017
Dear Rakesh,
To whom GTA is raising invoice?
To whom GTA is raising invoice?
Saket Agarwal
(Expert)
24 July 2017
As per Explanation(a) to reverse charge notification - 13/2017 Central Tax (Rate) dated 28-06-2017:
"The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification."
If you (Rakesh Sharma) are the person "liable" to pay freight then you will be considered as the recipient of GTA service. Accordingly, if you are the recipient of GTA service then you will be required to pay GST on reverse charge basis.
I have assumed that your business is one of the categories mentioned in the RCM notification (eg you are a registered factory or you have taken GST registration etc.)
"The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification."
If you (Rakesh Sharma) are the person "liable" to pay freight then you will be considered as the recipient of GTA service. Accordingly, if you are the recipient of GTA service then you will be required to pay GST on reverse charge basis.
I have assumed that your business is one of the categories mentioned in the RCM notification (eg you are a registered factory or you have taken GST registration etc.)
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Rakesh Sharma
(Querist)
24 July 2017
thanks to all sir.
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