GST RCM on GTA for only NIL rated supply person

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? 

 

 

Replies (9)
Quick Summary
This discussion explores whether GST Reverse Charge Mechanism (RCM) applies to a dealer of nil-rated animal feed who hires unregistered transporters. While RCM is generally applicable for GTA services if registered, the nil-rated nature of the outward supply raises questions. It's clarified that RCM applies if the recipient is GST registered and receives services from a GTA, irrespective of outward supply status. However, ITC on RCM paid is typically not available for nil-rated or exempt supplies, meaning no refund can be claimed.

I think no required to pay GST on RCM Because your supply is Nill Rated supply and this supply not attract Rcm liablity Because you have supply only Nill rated Goods not Taxable goods.if you are both supply Nill rated or taxable then you have pay RCM in this case. its my openion
No RCM is not applicable

Thanks for your response.🙂

 

If u are registered in GST and services received from gta (ur/rd) then rcm is applicable. your out put service is exem is not a matter

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

 

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