Itc on reverse charge paid to gta

ITC / Input 606 views 5 replies

Dear sirs,

We are manufacturing goods which is taxable under GST @ 18 %. My question is : Case 1) Suppose the price of goods is Rs. 10 per kg & Rs. 1 is transport charge i.e total Rs.11. Now we are charging 18 % GST (9CGST & 9 SGST) on Rs. 11.

Here our question is - when we will pay the freight to GTA for transporting service on our goods from our factory to buyer's factory whether we have to pay rax on RCM basis ? If yes is this RCM available to us as ITC ? Please guide !

 

Case 2) Let the price of goods incluiding transport cost is Rs. 11 per kg in total. Here in this case we are not showing transportation charge seperately in Tax invoice as Rs. 10 + Rs. 1 as in above case. And GST is calculated on total price i.e on Rs.11 @ 18 %. 

Here when we will be paying the freight to GTA - Our question is whether we are liable to pay tax on RCM basis ? If yes is ITC available on the tax paid as RCM ? Pls advice !

 

Thanks,

Siddharth T

Maharashtra

Replies (5)
In both the cases whosoever pays freight to transporter has to pay GST on RCM basis provided GTA does not charge GST.
yes u need to pay tax under RCM and u can take it as input tax credit after payment

Dear Sir,

We are manufacturer Steel and we are receipent of service of GTA and paying GST 5% (2.5 % CGST + 2.5 % SGST) on Reverse charge, whether we can take credit of 5% GST or Not.

yes you could take
Can we take credit of GST paid on RCM on Freight outward and Freight inward on both.


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