Reverse Tax

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This query is : Resolved

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This discussion clarifies whether a clearing and forwarding agent is liable for reverse GST (RCM) when reimbursed for expenses by their principal. While the agent collects and pays GST monthly, the consensus is that they are not typically liable for RCM. The principal, however, is responsible for paying RCM on freight charges and claiming the Input Tax Credit (ITC).

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03 March 2021 A clearing and forwarding agent incurs expenses like loading, unloading, repacking, transhipment, freight, demurrage and gets reimbursed from his principal. The agent collects gst and pays it each and every month too. Is the agent liable to pay reverse tax? Technically there will be no such reverse tax as he pays the gst collected from his principal every month. Still, is it mandatory for the agent to offset the reverse tax in his monthly 3B return?