Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Gst gta rcm

RCM 529 views 6 replies

Kallol Sarkar

Accountant

189 Points Posted on 13 August 2019

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 Posted on 14 August 2019

liable to rcm

Padmahas Niwas

251 Points Posted on 14 August 2019

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

Kallol Sarkar

Accountant

189 Points Posted on 14 August 2019

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)

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

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