Please find the query with respect to reverse mechanism under GST along with tax treatment as per my opinion. You are requested to kindly advice whether same is correct or not:
1. Material sold by Gujarat unit to buyer within Gujarat on FOR basis. Now transporter raise the invoice to Gujarat unit for transportation charges. As per GST act GTA is covered under RCM so GST needs to be paid by Gujarat Unit. But which GST is to paid in following condition:
a. Transporter is in Gujarat – In my option CGST + SGST
b. Transporter is of Outside Gujarat – In my option CGST + SGST
2. Material sold by Gujarat unit to buyer outside Gujarat on FOR basis. Now transporter raise the invoice to Gujarat unit for transportation charges. As per GST act GTA is covered under RCM so GST needs to be paid by Gujarat Unit. But which GST is to paid in following condition:
c. Transporter is in Gujarat – In my option CGST + SGST
d. Transporter is of Outside Gujarat – In my option CGST + SGST
Kindly advice whether it is ok or not.
CAclubindia
