Gta - gst

172 views 2 replies

sakthi

Business consultant

137 Points Joined May 2008

Hi Friends,

I have a basic doubt in GST GTA - Reverse Charge mechanism. I am receiving a frieght / transportation bill from Regd. person and he is charging 2.5% CGST and 2.5% SGST in the bill. Since the GTA is comes under RCM, how will i treat this input GST in tally while entering? While in RCM the GTA is comes under GST 12%, shall i consider this 2.5% SGST & 2.5% CGST as cost? If so the tranporter also has paid as output in their account, correct? How to account and how to treat? Pl advice.

rgds

sakthi

Replies (2)

Pratik Surve

Assistant Professor

571 Points Joined September 2017

IF HE GTA THEN HE CANNOT CHARGE THE GST ON FREIGHT. IN SUCH CASE THE SERVICE RECEIVER HAS TO CHARGE RCM.

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

A Goods Transport Agent has following Three Options or we may say three situations :

1. Providing Services to Specified Category Recipient – Applicability of Reverse Charge as per Notification No. 13/2017- Central Tax (Rate) Dt : 28.06.2017

2. Services to other than Specified Category Recipient – Forward Charge @ 5% without ITC – Rate of GST as per Notification No. 11/2017-Central Tax (Rate) Dt : 28th June, 2017

3. Forward Charging with ITC Availment – Forward Charge @ 12% availing ITC – Notification No. 20/2017 – Central Tax (Rate) dated 22ndAugust, 2017

So Yes GTA can charge 5% GST & recepient has to do RCM on the same .
As the Recepient will not get the ITC on same he can include GST charge by GTA in his Cost of freight