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Courier charges on purchase excluding gst

shiraz ahmed (Student) (225 Points)

19 October 2017

i got an Interstate Purchase Bill dated: 09-Sep-2017 for Value of 26,200 Rs.

IGST paid @ 18% 4,716 Rs.

In the bill, 50 Rs have been addded at the end for Courier Charges.

Total Bill 30,966 Rs.

i want to know:

Was the supplier supposed to charge GST on courier Charges of 50 Rs. too ?

Or it would attract RCM for 50 Rs ?

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9 Replies

g mahesh Mundra (Business and tax consultant) (3293 Points)
Replied 19 October 2017

only supplier has to charge

RAJA P M ("Do the Right Thing...!!!") (127160 Points)
Replied 19 October 2017

@ Mr. Shiraz Ahmed.,
Actually the supplier billing is wrong. In case he add the courier charges in invoice then he ll be calculate GST on Courier Charges...

If the bill is before 13th October then you ll be pay Tax under RCM basis. Also you can calculate the courier charges in one day ceiling limit...

Gangaraju T C (185 Points)
Replied 19 October 2017

you should charge including courier charges other wise you should pay under RCM

shiraz ahmed (Student) (225 Points)
Replied 19 October 2017

the bill dated 09-Sep-2017,

Daily limit was 5000, on which RCM was exempted.

But, the Supplier is Registed and be didn't charge the GST on Courier Charges of 50 Rs.,

Is RCM Exempted or Payable now ?

1 Like

Dibin Divyakumar (CA) (743 Points)
Replied 19 October 2017

How will the RCM applies??? He's not purchasing from any unregistered person. So how will 9(4) attract??? It's the liability of the supplier, Wrong invoicing by supplier. No TAX liability for the purchaser. It's the responsibility of the registered supplier to bill properly.

RAJA P M ("Do the Right Thing...!!!") (127160 Points)
Replied 19 October 2017

@ Shiraz Ahmed.,
Payable if it's exceed on basic ceiling limit of 5k...

First the supplier ll be charge GST on his billing if he add other charges in his bill based on principle supplies. So, the bill is wrong as per supply...

Otherwise he* is not registered as Courier service. So, the supply of Courier from Unregistered Supply.

The receiver pay Tax under RCM basis if exceed above 5k limit

RAJA P M ("Do the Right Thing...!!!") (127160 Points)
Replied 19 October 2017

@ Mr. Dibin Divyakumar.,
Yes.. You are correct. The supplier is wrongly billed...

But, in this situation the service is not registered by the supplier...
So, Tax liability to recipient hand...