GTA REVERSE CHARGE

RCM 147 views 3 replies

akshay kumar garg

student

73 Points Joined September 2013

Dear all
I hav one doubt re GST

LAW:
If GTA charges for single consignment Rs.1500 or less, GTA exempt from collection of tax.

Fact :
On GTA services, Reverse charge is applicable

Doubt:
Suppose I pay Rs. 1200 to GTA, whether limit of Rs. 1500 also available to me?
Or I have to deposit the tax on reverse charge basis irrespective of limit available to GTA?

Replies (3)

CA Shivam Arora

Chartered Accountant

2414 Points Joined November 2016

If GTA raised an invoice on which it is mentioned that tax is to be discharged on RCM basis, then you should discharge tax on RCM basis. 1500 limit is not for you but for GTA to decide whether tax is to be charged on RCM basis

Raj Chaurasia

273 Points Joined November 2016

if bill raised by GTA doesnot exceed 750, Then rcm is not applicable ..for u being recipient value of 1500 is irrelevant.. that has to be checked by the GTA Supplier.

akshay kumar garg

student

73 Points Joined September 2013

from my point of view

first
we should check whether supply comes in the ambit of taxable supply

then
we should decide who will pay the tax, whether in forward mechanism or reverse charge basis.

and if
transaction exempt, second question should ( Forward charge or reverse charge) not arise...

what your views in this point of view