GST RCM ITC on Freight - ITC Not available as per GST Portal

As per Section 12(8) of IGST Act :
Supply of services by way of transportation of goods the POS is:
(A) Location of recipient if Recipient is registered.
(B) If Recipient is not registered then POS is Location where goods handed over for transportation.

So it should be Karnataka & IGST need to charged.

But In case of RCM the ITC is available to Recipient only when it is paid in cash.
So even it is being reflected in 2A as wrong place of supply you can report the same under the correct statute ie IGST in GSTR 3B & deposit the cash under same , as you can avail ITC .

Thank you sir....

If the transaction is under RCM then the supplier should have not reported tax amount. In this case, supplier needs to amend the invoice. In case of GTA supplies covered under RCM the tax is payable as follows:

GTA Service - What should I pay - SGST+CGST or IGST

https://youtu.be/z5TRy66KHpc

GST implication on freight charges and refund to exporter of goods

https://youtu.be/pu1NPB3eWUM

Freight Forwarder (FF) has charged correctly in his invoice. Since location of supplier is AP and place of supply is also AP, FF has correctly charged CGST and SGST.
Now you being registered in KN, receiving services from AP on which CGST & SGST has been charged, is not allowed to take ITC as the reason mentioned in your query is correct.
You have to pay tax under RCM on this but you can not avail ITC.
If you wish to avail ITC, you can take new registration in AP and can avail ITC. Or you can choose FF of KN to provide you such services.

Feel free to contact for further assistance.

Regards

Sandesh Sir, Location of manufacturer is Karnataka. he availed services of transporter from andra Pradesh to ship goods from Karnataka... Since Transporter of Andra Pradesh providing transportation service for taxpayer of Karnataka, place of supply seems to be Karnataka only.

I beg your pardon for my above view which was formulated based on my understanding of query in different manner. I have gone through in detail now, and it is clear that Manufacturer is registered in KN and receiving GTA services of AP registered GTA and paying for the same also.

GTA should raise IGST invoice and Manufacturer should pay it under RCM as IGST.

Now, in current situation, when GTA has already raised CGST & SGST invoice and also shown that in its GSTR-1, you should request him to raise a Credit Note for the same and fresh issue an Invoice with IGST. 

I appreciate reply by Mr. Pankaj Rawat Ji. Same should be followed as to Pay IGST under RCM and avail ITC.

Feel free to contact for further assistance.

 

Regards

 

Thank You so much for clearing the issue... rawat sir, somil sir and Sandesh sir.....