My friend is a dealer in animal feeds which is NIL rated supply.
He will buy from a manufacturer (intra-state) and hire a lorry (unregistered transporter) for transportation of feeds from the manufacturer location to his godown. The hire charges will be around Rs.10,000 to Rs.12,000 per trip.
So he needs to pay GST under RCM?
If yes, whether he can claim ITC and get a refund on ITC later?
Thanks for your response.🙂
Then can we claim ITC ? and can we get refund?
RCM will be applicable if you are registered under GST and you are taking services from a GTA
Since your outward supply is exempt ITC will not be available and therefore no refund.
Sir,
"Anyone who provides consignment note for goods delivery is treated as GTA and a mere bill is not consignment note"
In the given case told earlier. The individual lorry owner cum driver won't provide consignment note and not even bill. Just he will collect money based on the kilometre and load capacity of the vehicle.
That is why I said Rcm applicable only if GTA.
In your case the lorry owner doesn't seems to be GTA.
It is exempt.
No need to pay gst
in your case no RCM is applicable
CAclubindia
