Is GST payable in RCM on payment to GTA if freight charges included in Invoice and tax charge on the

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GAURAV GOYAL

STUDENT

31 Points Joined March 2011

Dear Sir/Madam,

We charged freight charges on invoice and calculated GST on the same rate as applicable on goods. But the same amount of freight paid to GTA. Is GST to be paid on RCM also.?

Example:

Value of Goods 90000/-

Freight charges 10000/-

Taxable value 100000/-

GST @ 18% 18000/-

Total Invoice value 118000

Now we paid 10000 to GTA and my Freight account shown in Profit and loss account as 0/-(10000 Dr-10000 Cr).

Is RCM applicable on payment to GTA of 10000/-

Thanking you

Replies (5)

The goods transport agency opts to pay the tax on forwards charge basis then, such GTA would be liable to pay central tax @ 6% on all the services of GTA (including used household goods for personal use) supplied by it. So, the tax rate on GTA services on forward charges basis was fixed @ 12% (6% CGST & 6% SGST).

If GTA opts to charge tax on forward charges basis then the service provider & services recipient, both would be eligible to get the input tax credit.

Fazil Ahmad

75 Points Joined June 2019

Did the transprter charge gst in its bill?

Balamurali Unnithan MS

STUDENT

1631 Points Joined August 2017

If transporter is unregistered , s
Answer is no

Akshay Parakh

Chartered Accountant

494 Points Joined August 2015

What u did is u took service of gta and give service of transportation to the buyer..so basically u will have to collect gst by buyer and pay rcm to gta if he is unregistered as u have taken service from him and given to the buyer