Seller of goods registered under GST but buyer and Goods Transport Agency are URD.
Buyer paid freight at the time of getting delivery of material.
Whether RCM applicable on freight and if yes who will liable to pay.
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RCM ON FREIGHT
Replies (9)
Quick Summary
If buyer was liable to pay freight then seller not liable to pay gst on rcm
RCM is applicable on freight @ 5% and recipient will be liable to pay the same
recipient must be registered u/s 24
recipient must be registered u/s 24
@ PARWAL CONSULTANTS.,
As per Your query rcm not applicable.
As per Your query rcm not applicable.
Do not agree with any of the above answers.
Section 24(iii) requires any person liable to pay under RCM to be compulsorily registered under GST (irrespective of turnover).
Therefore, if the buyer has paid the freight then he is considered as the recipient of services. Refer Explanation (a) to notification 13/2017-CT(R).
Therefore, buyer requires to register under GST and discharge taxes under RCM.
As he is registered now, all other provisions would be applicable, i.e. outward supply taxes, inward supply credit, penalty, notices etc.
Mr Akshay I have said same thing......
Yes Sunil missed your response. Anyway have provided additional details in my response too.
@ Mr CA Akshay Hiregange.,
Can You give some more details for the sec 24(iii) of CGST act...
I mean want explanation of "persons who are required to pay tax under reverse charge;"
here who is the person...?
Can You give some more details for the sec 24(iii) of CGST act...
I mean want explanation of "persons who are required to pay tax under reverse charge;"
here who is the person...?
@ CA Akshay
GTA services to URD is also eligible for exemptions subject to certain conditions (Entry 21A)
At any rate seller will not be liable to pay GST on RCM in this case.
Persons required to pay under reverse charge are the ones who are mentioned in the last column in notification 13/2017-CT(R).
@ Mr. Zafar has correctly mentioned, I had completed missed this, thank you.
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