Rcm under gta

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veeru (Querist)
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14 August 2017 A taxable registered person of Telangana made some inward supplies from a registered taxable person from Maharashtra. The freight amount of Rs. 75000/- paid by the recepient dealer of Telangana. Now the question is whether under RCM on GTA services the dealer of Telangana to pay under IGST or CGST or SGST since the transporter of Maharashtra is unregistered.
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veeru

veeru (Querist)
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25 October 2017 Dear friends, regarding the RCM , while showing in GSTR 2- what is the amount to be shown- gross amount or Tax amount

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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20 July 2025 1. RCM on GTA services — Which tax to pay? (IGST/CGST/SGST)
Scenario:
Recipient: Registered dealer in Telangana (State A)
Supplier (Transporter): Unregistered GTA in Maharashtra (State B)
Freight paid by Telangana dealer: Rs. 75,000
What does the law say?
Under GST, RCM is applicable on GTA services provided by unregistered transporters (GTA = Goods Transport Agency). The recipient has to pay tax on reverse charge basis.
Which tax is payable?
Since this is an interstate supply (Telangana to Maharashtra), the tax under RCM is IGST.
Summary:
Telangana dealer must pay IGST under RCM on the freight amount paid to the unregistered transporter in Maharashtra.
2. What amount to show in GSTR-2 for RCM? Gross or tax amount?
In GSTR-2 (or GSTR-2A/2B), you report the taxable value and tax amount.
For RCM supplies:
You show the taxable value (freight amount, Rs. 75,000)
You show the tax amount calculated on that value (IGST @ applicable rate)
So, you enter:
Taxable Value: Rs. 75,000
Tax Amount: IGST on Rs. 75,000 (e.g., 5% or 12% as applicable on GTA services)
Additional points:
The usual IGST rate on GTA services is 5% without ITC or 12% with ITC, depending on your input credit claim status.
You should check the applicable rate for your transaction.

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