RCM

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This query is : Resolved

Quick Summary

If you're a manufacturer receiving transport services from a Goods Transport Agency (GTA) that issued a consignment note, you're likely liable to pay GST under Reverse Charge Mechanism (RCM), even if the GTA isn't GST registered. If you encounter a GSTR-3B error regarding a variance above 10% with auto-populated data, you can still claim eligible input tax credit after reconciling your accounts.

MAHESHA R

MAHESHA R (Querist)

18 December 2020 Kindly advise we are manufacturer and taken service of Transport Service from our factory to customer factory , he has issued bill but not registered under GST

Whether we are required to file GST UNDER RCM or not

Kindly advise

CA Anita Bhadra

CA Anita Bhadra (Expert)

18 December 2020 In case, the transporter is GTA and issued a consignment note. You are liable to pay GST under RCM irrespective of the fact whether GTA is registered or not.

MAHESHA R

MAHESHA R (Querist)

18 December 2020 Yes madam but when i go to enter the amount in Nov-2020 GSTR3B the system is showing as per below error message.

Note : The information entered by you is in variance (>10%) with the auto-populated data. The input tax credit/reverse charge liability has been auto-populated on the basis of the GSTR-2B generated for you. Also, please note that any variance above 10% of the input tax credit in contravention to Rule 36(4) of the CGST Rules, 2017. Kindly recheck and proceed.

Kindly advise in this regard