Gst ITC in fright and forwarding

Is Safeexpress pvt Ltd  GTA ( Goods Transport Agency) ?. if yes , are you  paying GST under RCM ? please clarify.

Are you paying GST under RCM ? , because  for  GTA  RCM  is applicable , if  GTA  is not opted  to pay GST  under  Forward charged .  

Yes , I have notice that  18 %  IGST  ( 5000 *18% = 900 )   has been charged , however in case of  GTA  its either 5% ( No ITC )  or 12% ( with ITC )  in case of RCM, So that  clarification also  needed  . 

Originally posted by : prasad Nilugal
	Yes , I have notice that  18 %  IGST  ( 5000 *18% = 900 )   has been charged , however in case of  GTA  its either 5% ( No ITC )  or 12% ( with ITC )  in case of RCM, So that  clarification also  needed  .

So,

If Safe Express charged 18% GST then its not under RCM basis. Right...??!

Raja PM Sir

We still  inform him regarding entries under RCM and forward charge .

Entries under RCM

Transparent Charges A/c Dr
Input IGST RCM A/c Dr
To Output IGST RCM A/c Cr
To Safeexpress Pvt Ltd A/c Cr
( Transport charges payable under RCM )
 

RCM payment entry

Output IGST RCM A/c Dr
To Bank A/c Cr
( payment made under RCM )

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Entries under forward charges

Transport Charges A/c Dr
Input IGST A/c Dr
To Safeexpress Pvt Ltd A/c Cr
( Transport charges payable)
 

payment  entry 

Safeexpress Pvt Ltd A/c Dr
To Bank A/c Cr
(! payment entry ) .