Gst gta rcm

RCM 323 views 6 replies

Kallol Sarkar

Accountant

189 Points Joined January 2009

Company X exports goods to Y in Bangladesh. Company A is GTA who picks up material from X and transport it to Y in Bangladesh. GTA company A receives freight from Company X in Indian Rupees..

The transaction is defined as follows-

Service Provider- A in India

Service Recipient- X in India

Place of Supply- Bangladesh (after amendment of IGST Act 12(8) w.e.f. 01.02.19)

My question is whether X, being the recipient, is liable to pay GST on RCM basis OR it can be treated as export of service/ zero rated supply and no RCM required ?

Please explain.

Replies (6)

Anand Tak

47 Points Joined February 2019

liable to rcm

Padmahas Niwas

251 Points Joined August 2011

rcm is applicable in this case. it will not be treated as export of GTA service.

Kallol Sarkar

Accountant

189 Points Joined January 2009

Department claimed that after amendment of IGST Act 12(8) wef 01.02.19, it will give relief to exporter of goods. But that is not true. Exporter has to pay GSt on RCM basis as earlier.

Is that a final say?

(after amendment of IGST Act 12(8) w.e.f. 01.02.19)

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after amendment of IGST Act 12(8) w.e.f. 01.02.19)

Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=524641&offset=1