Supplier collecting and paying taxes on transaction attracting RCM cannot relieve the recipient from RCM liability. However, there are few case laws in ST regime wherein they says, as there is no revenue loss to govt., no need to pay again under RCM.
Its better to make a decision whether to pay again under RCM or not..
Henceforth, do not pay GST to GTA though he is charging @ 5% but pay under RCM.
Supplier charging GST and paying cannot relieve the recipient from RCM liability. However, there are few case laws in ST regime which says, as there is no revenue loss to govt. no need to pay again under RCM.
If GST is not paid under RCM, it is always disputed but may be defended..
Henceforth, ensure GST is not paid to supplier but discharged under RCM.
@ Padmanath - RCM on GTA transaction is applicable if the recipient is registered person in addition to specific list. Just check once
(d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or
Every registered person has to pay under RCM for GTA transactions..
Sl. no. d of persons - liable under RCM
@ Pankaj Rawat ji:
Dear sir:
kindly help.
our tpter charges Rs. 1000 in bilty, we paid him Rs. 1000
in our gstr 2A, we see that he has shown Rs. 1000 as basic and Rs. 50 as gst.
1). Can we take itc of this 50 and not deposit rcm.
2). do we have to deposit 5% rcm on this and then take itc of this 5%.
Thanks in advance.
CAclubindia
