Hello,
In gst if we take local transport facility/ service for material received from unregistered supplier. Supplier give a invoice without charges of GST , AS they are not eligible for GST . Invoice value of GST is over and above of Rs. 5000/- shall we (Registered buyer) are liable to pay tax on it?
If yes, Should we apply the RCM on it?
First of all you have to separate the two RCM sections, i.e. RCM u/s 9(3) and RCM u/s 9(4).
RCM u/s 9(4) is for unregistered purchase and is no more applicable, irrespective of any limit. Old section has been abolished and has been replaced with a new one, where it is applicable to notified persons and goods, but that’s a separate issue.
Now, RCM u/s 9(3) relates to freight. But it will be applicable if the transporter is a GTA, i.e. Goods Transport Agency, whether registered or unregistered.
But, if the transporter is not a GTA, means does not issue any consignment note or lorry receipt like unorganized sector or individual truck owners, then GST is exempt for both in and outside state.
Further, if the transporter is a GTA but the consideration charged for the transportation of goods in a single carriage does not exceed INR. 1500 and for all goods for a single consignee does not exceed INR. 750, then also GST is exempt.
So, in case of freight, you have to decide accordingly.
THANKS Deepak , one more query in this regards transporter is GTA, issue the invoice , but they are not registered in GST. what is effect in GSTR / GST. Here RCM is applicable ?
Yes you have to pay GST under RCM in both cases.
ok. sir but wherether we show, in gstr 1, How to show in gstr1, when RCM is apply on GTA, UNregisted ?
In GSTR-3B:
3.1 (d) Inward supplies (liable to reverse charge)
Fill taxable value and tax amount
4(A)(3) Inward supplies liable to reverse charge (other than 1 & 2 above)
Mention the amount of tax
In GSTR-1: No Treatment
Since it is an inward supply and GSTR-1 deals with details of outward supplies of goods or services
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