Goods transport services

koi registered person jaab gta service leta hai aur 5% under rcm to kya usko input milega aur 12% charge hota hai gta kay bill kay upper kya issmay input milega
Replies (7)
Quick Summary
This discussion clarifies Goods Transport Services (GTA) GST implications, particularly regarding Reverse Charge Mechanism (RCM). It explains that when a registered person uses GTA services and opts for the 5% RCM rate, input tax credit (ITC) is generally not available. However, if the 12% RCM rate is chosen, ITC is typically claimable by the recipient. The thread also provides detailed Tally accounting entries for both scenarios, guiding users on how to correctly record these transactions.

12% me input milega , bt 5% me nehi milega isko alagse input and output adjust karke nil karna hoga.
Tally main entry kaise kare 5%waly rcm ka sir
Why not.. in both case recipient can take ITC... condition of availing itc or not is on gta.. if he opts for 12 percent itc available Or if his supplies comes under rcm itc would not available.. but in both case recipient will be able to take itc.
You can view this link for your query....

https://help.tallysolutions.com/tally-prime/gst-reverse-charge-transactions/india-gst-inward-supply-rcm-tally/

Tally Entries , if your company  paying Transport charges under  RCM  (12%)  and availing  ITC 

1)   Transport  Charges   A/c   Dr

      Trade Creditors        A/c    Cr

( Being  Transport charges payable under RCM )

 

2) Reverse Charge         A/c   Dr

   To CGST                   A/c   Cr

   To SGST                   A/c   Cr

(  Increase Tax liability under RCM )  

 In Tally ERP 9  -  ALT+J - Stat Adjustment

 

3)  CGST                    A/c   Dr

    SGST                     A/c   Dr

    To Bank                  A/c   Cr

( Payment of  Tax to GOVT  account under RCM  )

In Tally ERP9 - AlT+ S - Stat payment

 

4)  CGST                   A/c    Dr

    SGST                   A/c     Dr

   To  Reverse Charge     A/c        Cr

( entry to avail input tax credit under RCM 12% )

Tally ERP9 - ALT+J -STAT -adjustment

  

5) Trade Creditors          A/c       Dr

    To Bank                    A/c       Cr

( payment made to Transport company )

 

Note -  Reverse charge account  under  current asset , in Balance sheet  .  

In my opinion  you OPT  for 12% with RCM  instead of 5%  with no ITC   .

If you are paying under 5% RCM  with no ITC  , then  entry will be

1) Transport  Charges  A/c            Dr

   To Out Put CGST  RCM     A/c           Cr

   To Out put  SGST  RCM   A/c            Cr

   To Trade  Creditors            A/c           Cr    

(  Booking of  an expense and tax payable under RCM )

 

2) when you pay tax under RCM  entry will be

   Output CGST RCM     A/c      Dr

   Output SGST RCM     A/c      Dr

   To  Bank                    A/c             Cr

( payment under RCM )

 

3) Trade Creditors         A/c     Dr

    To Bank                   A/c    Cr

( payment to party for Transport charges )

Create separate  ledger  Output CGST RCM  A/c & Output  SGST RCM  A/c  under Duties & Taxes  , liability side

Balance sheet .

 

 

 

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