Sir, I purchased cement from a dealer which is 28% and after 1 month he gave invoice for transportation on RCM basis @ 5% with ITC. Now, the question is I have also issued bills only for cement how may I issue bill for transportation charges. will it @ 5% or any other.
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Quick Summary
This discussion clarifies the tax rate applicable to transportation charges when a dealer issues a separate invoice. If the dealer is not a Goods Transport Agency (GTA) and issues a bill for transportation, Reverse Charge Mechanism (RCM) typically does not apply, and the recipient can claim Input Tax Credit (ITC) on the 5% GST charged. However, if the transporter is a GTA, RCM is applicable, and the recipient is liable to pay the GST. The advice suggests that if the dealer is not a GTA, the recipient can claim ITC directly or request the dealer to pay the liability.
Dear Akshay There are 2 transactions involving in your query 1. You Purchase Cement on which GST being charged @ 28% which is fine .
2. Now you got the transportation bill @ 5% GST .
In 2nd transaction , the bill for transportation is from Dealer or from GTA ?????
Assuming that you got bill from Dealer not from GTA : Then no RCM is applicable , you can claim ITC of 5% being charged on bill. Note : The correct way for billing ,Dealer must have added the transportation expenses in bill for the cement .
Assuming you got the Bill from GTA : Then in term of Notification 13/2017 CT (R) , You are liable to do RCM . Note : Ask GTA not charge 5% GST on bill as RCM is applicable & you as registered taxpayer is liable to do RCM.
Sir he is not GTA, he have transport division saparately and he issued bill on RCM basis.
my query is I have issued only tax invoice of cement and freight bill is issuing after 10 to 15 days will I give 1) bill of supply and not charging GST @ 5% or 2) charging GST @ 5% or 3) if not above which kind of bill to be issued to party i.e. is freight Bill saparately issued is exempted ?
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