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RCM on GTA

22 February 2018

A partnership firm purchases & sales goods to registered/ unregistered Individuals and registered companies under GST via GTA. So, is it liable for payment of GST under RCM ??

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8 Replies

Mondira Saha (GST) (3925 Points)
Replied 22 February 2018

yes if transporter not charge tax then liable to pay 5% as RCM

vamsi krishna (Article Assistant) (268 Points)
Replied 22 February 2018

Sir,

Let me know floowing things,

1) while purchasing godds from your supplier, whether he charging transporation charges in invoice itself or you people directly paying to transporter ???

2) while selling goods to your customer, who is liable to pay transportation charges to the transporter ?????

3) if you paying transportation charges to transporter, whether he charged GST in such invoice or not ?????

Thanks

Ashish Bansal (19 Points)
Replied 22 February 2018

1. Firm is directly paying the transportation charges, they aren't included in the invoice.

2. While selling, firm is paying the transportation charges.

3. He isn't charging any GST in the invoice.

Ashish Bansal (19 Points)
Replied 22 February 2018

Sir,
I also wanted to know whether Credit is available if GST is paid on RCM ?
Also, is there any limit specified upto which such transportation charges are exempt under RCM ?

vamsi krishna (Article Assistant) (268 Points)
Replied 22 February 2018

Sir,

Insuch cases, as per Notification No. 13/2017- Central Tax (Rate) dated 28-06-2017, w.e.f 1-7-2017, Partnership firm is liable to pay GST under reverse charge mechanisum if Transporter is not collected any tax in his invoice.

Thanks

Ashish Bansal (19 Points)
Replied 22 February 2018

and sir what abt the credit and limit ?

vamsi krishna (Article Assistant) (268 Points)
Replied 22 February 2018

Sir,

1) You can take the credit of GST paid on RCM on GTA services, unless if it is restricted by some other section.

2) as per S.R.No 21 of Notification 12/2017-Central Tax (Rate), following services provided by GTA is exempted, Please gothrough it and if any thing is covered in your case, you no need to pay the same under RCM.

for your reference, here am providing aforesaid SR no of aforesaid notification.

Services provided by a goods transport agency, by way of transport in a goods carriage of,-

(a) agricultural produce;

(b) goods, where gross amount charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;

(c) goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred fifty;

(d) milk, salt and food grain including flour, pulses and rice;

(e) organic manure;

(f) newspaper or magazines registered with the Registrar of Newspapers;

(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or

(h) defence or military equipment’s;

Thanks