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Rcm confusion

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caclub member

accountant

46 Points Posted on 17 January 2020

service took from xyz cargo.he is registered but gst no not mentioned on the slip. charges paid total 2000/-.gst tax not mentioned in the bill.
1.should i pay rcm on 2000/-.
2.earlier i paid rcm from cash ledger,and took itc manually ,but while reconcile 3b vs 2a,the amount of rcm not reflected in 2a,hence shows as pending liability.
what is treatment to offset the liability.

Replies (5)

Quick Summary

This discussion addresses confusion surrounding the Reverse Charge Mechanism (RCM) for cargo services. It clarifies that if a registered transporter (like XYZ Cargo) doesn't mention GST on their bill, you should pay GST under RCM on the total charges. The thread also explains that RCM-related Input Tax Credit (ITC) might not appear in GSTR-2A, but you can still claim it in your books and GSTR returns.

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 17 January 2020

Originally posted by : caclub member

service took from xyz cargo.he is registered but gst no not mentioned on the slip. charges paid total 2000/-.gst tax not mentioned in the bill.

1.should i pay rcm on 2000/-.

- Ans : Yes... If he is GTA then You pay GST Tax under RCM basis on 2000

2.earlier i paid rcm from cash ledger,and took itc manually ,but while reconcile 3b vs 2a,the amount of rcm not reflected in 2a,hence shows as pending liability.what is treatment to offset the liability...

- Ans : RCM related ITC not showing in GSTR-2A. We only consider the ITC in Our Books & GSTR returns. Don't be feel about that...

jasmeet singh

220 Points Posted on 17 January 2020

Please verify From the GTA that he had not charged the gst ,or not bifurcated on slip.
if not charged by him then you have to pay under RCM.
and shows it in inward supply liable to RCM

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 17 January 2020

Originally posted by : jasmeet singh
	Please verify From the GTA that he had not charged the gst ,or not bifurcated on slip.if not charged by him then you have to pay under RCM.and shows it in inward supply liable to RCM

First will verify he is GTA on Non-GTA...