GST rate on freight paid under RCM
This query is : Open
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
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%
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%
24 July 2017
Is Union recovering same @5% from you?
24 July 2017
no sir, union is unregistered
24 July 2017
Sir, please reply. Its urgent. I have to deposit 5% or 18% under RCM
24 July 2017
Sir, Please reply to help me
24 July 2017
Dear Rakesh,
To whom GTA is raising invoice?
To whom GTA is raising invoice?
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.)
Message likes :
1 times
24 July 2017
thanks to all sir.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Price inclusive or exclusive of GST while made entry in P& L Account
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Minimum tax payable to file Updated return
- Change Of Karta In Case of Death
- GST Intimation due to Government took possession of Business Premises under PPE Act
- Tax rate change regarding
- UDIN ISSUE
- TDS on purchase of under construction property from a reseller
- Non filing of I T Returns
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
