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gta some cases 12 Percent charged

kailash (article) (161 Points)

18 July 2020

a GTA not opted to pay tax under forward change but between the year in some cases they charged 12 percent approx in 30 percent cases , is their an issue if yes so what is the solution.

@ RAJA P M SIR

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8 Replies

Vijayprakash P (1313 Points)
Replied 18 July 2020

GTA has two options: 12%GST with ITC and 5%GST without ITC.

RAJA P M ("Do the Right Thing...!!!") (127171 Points)
Replied 18 July 2020

@ Mr Kailash.,

Elobrate with more details for Your query...!

kailash (article) (161 Points)
Replied 18 July 2020

Our client is a GTA (Service Provider) , and opted not to charge any taxes on transportation services but in a case they charges 12 percent gst on forward charge basis on the demand of service receiver, so my que is here that their is any problem comes if charges gst from some client and not from all .

if any problem so what is the solution for that .

note : all the service receipient are liable for RCM.

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 18 July 2020

GTA can either function under 5% RCM or 12% forward charge. It cannot continue with both. Once opting for 12% forward charge it cannot go back to 5% RCM for any of the supplies.

Shivam RC (Student) (23683 Points)
Replied 19 July 2020

Under GST Regime, the GTA has two options :

1). Either opt for RCM and the Recipient of the Service will be liable to pay GST @ 5% on RCM basis. Note that ITC will not be available in the hands of the GTA. [ Section 9(3) of the CGST Act 2017 ].

OR

2). Opt for Forward Charge and pay GST @ 12% with the full benefit of ITC. [ Section 9(1) of the CGST Act 2017 ].

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kailash (article) (161 Points)
Replied 19 July 2020

@ shivam rc ji
but in some cases between the year we charged 12 percent mistakenly on demand of a client so their is any issue ,we not want to take any itc