My query is we sell steel with GST invoice on ex-premises terms. Hence whatever freight charges/transportation applies on such goods, we include in sales invoice, at 18% GST, same as our goods GST rate.
Whatever transportation charges we apply in sales invoice to customer, same are paid to transporter.
Question is do i need to pay RCM @ 5% on such transportation as i am already applying GST @ 18% on such charges in sales invoice to the customer?
In case your transporter is GTA, you are liable to pay tax under RCM. However, you can avail ITC of the tax paid under RCM in the same month itself.
Sir the transporters are individual vehicle owners unregistered in GST. We apply transportation charges in sales invoice (at 18% GST) and pay them in cash with entry in cash voucher.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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