RCM for lorry other than GTA

RCM 869 views 4 replies

Mk Chaitanya

14 Points Posted on 17 October 2020

Hi Team,

I am afraid this is a simple question but 65-70% of the business are looking for this answer, when I enquired.

Let say 'A' is business Entity in Propriety concern under composition ( GST Number ) by person 'B' and Same person 'B' is having Truck for hire separately (Vehicle is not registered for firm A ) and 'B' he is not a GTA ( as no consignment No. is issued). Daily basis 1 or 2 trips goods movement for firm 'A' is performed on trip hire basis.

now point here is as per Notification 12/2017 Central Tax Rate - sub heading -

"Services by way of transportation of goods- (a) by road except the services of— (i) a goods transportation agency; (ii) a courier agency; (b) by inland waterways" GST is exempted

Point 1 - here Transportation party with Truck attracts no GST.

Point2 - Does sending party or the consignee is entitled to pay GST here using RCM?

Most of the small firms hires trucks or Pickup vans on road who is just a singe vechile owner and has no GTA linkup. Does these cases attract RCM for the sender party or the reciever party?

Please kindly dont share all RCM pages from internet. vs GTA This idle case helps lot of cases in India tax process for single truck owner vs sender party (registered )

Thanks

Krishna

Replies (4)

Mk Chaitanya

14 Points Posted on 18 October 2020

Added small addition to this query.

Hire Charges / Day is below Rs 5000.00 can this be handled as petty cash for services provided under the provision

Notification - 8/2017 GST Central TaxRate ?

.. please answer the query. we have to submit our GSTR9A for 2019-20 even though it is optional as per new notification.

Thanks,

krishna

CA PARTH SHAH

In Practice

1951 Points Posted on 19 October 2020

You have answered your query yourself.'

RCM is applicable only of Service is provided by GTA. Since B is not GTA , no RCM is applicable.

The limit of 5000 per day is already withdrawn long time ago

Mk Chaitanya

14 Points Posted on 30 October 2020

Hi Partha,

Thanks for taking time in answering query, however, I have contacted GST Practioner / as well as personal CA Audtiors - inputs given -

1. if the hire charges are more than Rs 750 single consignment - RCM is applicable for non GTA or GTA unregistered as well.

please eloborate your opinion on this.

Thanks

krishna

CA PARTH SHAH

In Practice

1951 Points Posted on 30 October 2020

There is no RCM on non GTA Transport as well as unregistered transporter.

If you are thinking all transportation are GTA transaction, then you are wrong. Kindly refer the defination of GTA. You will be able to differentiate the difference. Morever, if the beleif that applicability of RCM on all GTA transaction is also. Specific entities are mentioned in the notification to whom if service is provided by GTA, then only RCM on GTA is applicable. Otherwise GTA has to pay GST themselves.