Rcm on gta

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Bipin Parmar (Querist)
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19 June 2018 Registered GTA is charging GST @ 5% to registered dealer on Transportation Charges. Will the registered person be liable to pay Tax under RCM?

Further, Can registered dealer take Input credit of GST charged by registered GTA?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 June 2018 Not liable to pay GST under RCM. Yes ITC can be claimed on it

Bipin Parmar

Bipin Parmar (Querist)
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20 June 2018 But as per Notification No. 13/2017 Central tax read with Notification No. 22/2017 Central Tax, RCM provision shall not be attracted if GTA opts to pay central Tax @ 6%

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 June 2018 Yes that is right. If GTA choose to pay 5% GST no need again to pay GST under RCM.

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Bipin Parmar

Bipin Parmar (Querist)
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21 June 2018 Thank you sir for your reply. But still confusion is there. In notification no. 22/2017 government has mentioned central Tax @ 6% but they haven't mentioned 5% tax in it. As far as I know GTA has three option to discharge liability.
Option I: Tax paid by service recipient under RCM
Option II: Pay tax @ 5% with no ITC RCM??? They haven't mentioned this tax rate in notification no. 22.
Option III: Pay Tax @ 12% with ITC. RCM not applicable as per notification no. 22/2017
Please clear this confusion .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 June 2018 If option II is chosen by GTA ITC can't be claimed by GTA but ITC can be claimed by service receiver. As GST already paid by GTA no need of again under RCM.

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