Hello All,
My client is into the business of trading de-oiled bran(DOB). When my client is purchasing from supplier, he is giving invoice for DOB and paying half of the freight amount to transport and for the rest of the transportation he is giving freight bill to my client to pay for transporter, and for that half of the transportation cost supplier giving credit note my client. And my client is moving goods to his customers and ask them to pay the freight. In this case whether my client is liable to pay GST on RCM basis??
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GST on freight
Replies (8)
Quick Summary
In short your question is-
Supplier charges full freight to your client through it's invoice, and then issue credit note for half freight amount to your client. And Transporter is issuing it's invoice to your supplier and not to your client.
if situation is same as above-
Then your client need not to pay GST under RCM.
Supplier charges full freight to your client through it's invoice, and then issue credit note for half freight amount to your client. And Transporter is issuing it's invoice to your supplier and not to your client.
if situation is same as above-
Then your client need not to pay GST under RCM.
No, transporter is issuing freight bill on my client name only for half of the transport cost. That means supplier paying half in advance and balance amount bill on my client name.
Rcm payable by Your client...
If Your is not a GTA then You don't want to pay GST on freight bill (credit note).
If Your is not a GTA then You don't want to pay GST on freight bill (credit note).
Mr. Ramaraju
If transporter is giving invoice to your client, than your client shall pay RCM on the value invoiced by transporter.
If transporter is giving invoice to your client, than your client shall pay RCM on the value invoiced by transporter.
Here the one more thing is my client is transferring the entire load to his clients as and when received from his supplier and my client is asking his clients to pay freight for that load. But invoice is in our client name only.
RCM shall be paid by your client.
if your client wants to charge it from your customer, then he should charge it into Invoice according to section 15 of CGST Act.
and GST shall be charged on the rate of principal supply I.e. DOB in your case.
if your client wants to charge it from your customer, then he should charge it into Invoice according to section 15 of CGST Act.
and GST shall be charged on the rate of principal supply I.e. DOB in your case.
Sorry for the different view...
If Your client will collect the charge from his client/customer then he must be Invoicing with GST...
Based on principal supply attracting only with principal supplies. If charged separately then GST as per supply's GST rate...
If Your client will collect the charge from his client/customer then he must be Invoicing with GST...
Based on principal supply attracting only with principal supplies. If charged separately then GST as per supply's GST rate...
Yes agree with Mr. Raja Ji .
Here , your client charging transportation charges from his client . Hence your client is supplier of Transportation services (Not GTA) so no RCM Applicable . But when your client is paying same to GTA( the bill from GTA is also raised on your client) , the RCM is applicable
Here , your client charging transportation charges from his client . Hence your client is supplier of Transportation services (Not GTA) so no RCM Applicable . But when your client is paying same to GTA( the bill from GTA is also raised on your client) , the RCM is applicable
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