GTA - RCM Charge

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MANAGER
373 Points Posted on 20 April 2021

We are  registered dealer in GST, this month (Apr,21) we have purchasing Machine from Interstate registered dealer  through Interstate Transporter who is Registered under GTA.  Transporter is not charging any GST in his INVOICE for Rs. 40000. Now our question is

  1. We will pay IGST under Reverse Charge Basis ? If yes then which  tax rate charged?
  2. Can We take full ITC against this RCM Payment’
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On 20 April 2021 at 17:43 Report
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Quick Summary
This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) for Goods Transport Agency (GTA) services. Registered dealers purchasing machinery via interstate transporters under GTA may need to pay IGST on a reverse charge basis. The applicable IGST rate is either 5% (without ITC) or 12% (with ITC), and input tax credit can be claimed against the RCM payment.

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Chartered Accountant
24588 Points Posted on 20 April 2021
Yes, GTA services are liable for RCM basis.
Rate will be 5% without ITC or 12% with ITC.
1 Reply
On 20 April 2021 at 18:30
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GST Consultant
15986 Points Posted on 20 April 2021
ITC available
IGST Rcm @ 5%
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On 20 April 2021 at 19:12
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student
108 Points Posted on 20 April 2021
Pay 5% igst in cash and claim input for the same.
Mr.Sourav you talking about ITC available to GTA , query is asked for RCM.
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On 20 April 2021 at 23:38

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