Reverse charge under gta

This query is : Resolved

santosh (Querist)
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08 November 2017 HI

I am working in manufacturing company engaged in pasta products, and instant products, its usual in our business to hire goods transport agency for carrying of Good stock and damage stock, now my query is whether the Reverse charge mechanism is applicable under GST as there was a notification from govt of abolishment of reverse charge upto march 2018 , if RCM is applicable what will be the percentage of GST?

Kindly guide me

Thanks in advance

Regards
Santosh

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
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08 November 2017 Reverse charge is applicable as GTA is covered under reverse charge service lists.
GST rate is 5%

RAJA P M

RAJA P M (Expert)
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08 November 2017 Dear Santosh.,
RCM applicable for Your above said transaction. Bcoz, GTA related RCM is still appilcable. These RCM applicable under section 9(3)....

Also RCM suspended in sec 9(4) of CGST, Sec 5(4) of IGST and Sec 7(4) of UTGST....
Mainly URD related inwards supplies are Suspended above said rules...

santosh

santosh (Querist)
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09 November 2017 Thank you so much dasarath sir and raja sir. My another doubt is if the transport vehicle tranfers goods form one state to another state, in my opinion it will attaract IGST, is there any provision in IGST about abolishment of RCM on GTA

Another doubt is if the transporter is having branch in other state form where we receive goods to our state and if he raises a service invoice in the local state what will be the treatment for that, for example transporter is having registered office in telangana and branch office in maharastra, we hired him for transport of goods from maharastra to telangana and the transporter issues a service bill with telangana address what will be the treatment in this scenario?

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
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17 November 2017 Under RCM, GST payer is always in same state hence he need to pay SGST and CGST.

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