RCM on GTA journal entry & when take itc

please suggest me

I have received bill from GtA rs. 30000/- date 31st May, 2022.....please confirm me journal entry of RCM & to take ITC in which month 3B (May or June)

Replies (8)
Quick Summary
This discussion clarifies the correct journal entries for Reverse Charge Mechanism (RCM) on Goods Transport Agency (GTA) services. It details how to book the RCM liability and subsequent payment, and addresses the crucial point of when to claim the Input Tax Credit (ITC) in your GST returns, specifically concerning the timing of payment versus the return filing period.

 RCM  entry 

Transport Charges  A/c Dr

Input CGST RCM   A/c Dr

Input SGST RCM  A/c  Dr

To Out put CGST RCM  A/c Cr

To Out put SGST RCM  A/c  Cr

To  Goods  Transport  Agency  A/c Cr

( Transport Charges Payable under RCM )

........................................

RCM  payment  entry

Out Put CGST  RCM   A/c   Dr

Out Put SGST  RCM   A/c   Dr

To Bank         A/c    Cr

( RCM  payment  made )

..............................

Then we take ITC in May month 3B as per you......but payment made in jun, please clarify

You are filing the return for the month of May in June and making payment of RCM liability in cash along with availing the same as Input Credit. While you are availing ITC, there is payment of GST in cash for RCM liability, which is crediting to you input Credit ledger.

I have not mentioned regarding ITC , only entries I have pass , ITC is dependent up on ,RCM under 5% or 12% .
5% rcm
Is it Inter-state transport or within state ?. please clarify.
Within state
Entry in books
CGST input available RCM Dr.750
SGST input available RCM Dr.750
RCM payable 1500 Cr.

Payment entry
RCM payable Dr.1500
Cash/bank Cr.1500
ITC
CGST input Dr.750
SGST input Dr.750
CGST input available RCM Cr.750
SGST input available RCM 750

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