Rate of gst on transpoting

This query is : Resolved

RATILAL LIMBANI (Querist)
Follow

14 January 2019 Dear Experts
my client is transporting Liker of छतीसगढ़ आबकारी विभाग, and charging 5% on GST, Aabakari Vibhag is not Register under GST regime. and my client is not taking any ITC, now Aabakari Vibhag is demanding revised bill by with 12% GST.
so let me help what should be rate of GST 5% or 12%

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

15 January 2019 Condition: As per Explanation to the notification

(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.

CGST @ 6% CGST (12% cumulative): Goods Transport Agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it with ITC facility.

It can be further interpreted that where the GTA is not eligible to take ITC for the supplies effected by it and the liability under GST is discharged under reverse charge basis, the recipient of GTA service discharging the tax liability is entitled to take Input Tax Credit (ITC) of the amount of tax paid under reverse charge, provided it is used in the course or furtherance of business at his end. Further the recipient would be eligible for ITC of the GST paid by GTA on forward charge basis.

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