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GAURAV GOYAL (STUDENT)     28 December 2020

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

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



 5 Replies

Balamurali Unnithan MS

Balamurali Unnithan MS (STUDENT)     28 December 2020

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

Fazil Ahmad   28 December 2020

Did the transprter charge gst in its bill?
Balamurali Unnithan MS

Balamurali Unnithan MS (STUDENT)     29 December 2020

If transporter is unregistered , s
Answer is no
akshay parakh

akshay parakh (Chartered Accountant)     29 December 2020

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
anil jain

anil jain (Partner)     31 December 2020

You paid the gst on freight and collected the same from your customer.

Thus you did not bear the burden of the same.

Therefore as per my view you are not entitled to claim the ITC for the same.


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