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RCM on Inter state Freight Charges
Helo Members, i have one query we received freight service in Telegana state, from Gujarat location transporter (Gst payable on reverse charge) mention in invoice should we creat tax liability as Cgst @ 2.5% & Sgst @ 2.5% or Rcm as Igst @ 5%. please suggest.
Replies (14)
Quick Summary
If the transport is Registered in GST:
IGST is applicable.
If Transporter is Not Registered in GST :
CGST/SGST is applicable .
(Refer Section 12(8) of IGST Act)
IGST is applicable.
If Transporter is Not Registered in GST :
CGST/SGST is applicable .
(Refer Section 12(8) of IGST Act)
Sir as per section 12(8) igst act ,"The place of supply of services by way of transportation of goods,including by mail or courier to,-(a) a registered person, shall be the location of such person".
The place of supply of service will be as following.
When the recipient of service is a registered person
The place of service will be the location of recipient of service
When the recipient of service is not a registered person
The place of service will be the location at which such goods are handed over for their transportation.
When the recipient of service is a registered person
The place of service will be the location of recipient of service
When the recipient of service is not a registered person
The place of service will be the location at which such goods are handed over for their transportation.
Sorry for above reply ,.... the POS is the location of Receptient if he is Registered else the POS will be location from where the Goods are handed over for transportation.
Hence CGST/SGST is applicable
Hence CGST/SGST is applicable
Yes... I agreed to Mr Pankaj Rawat Ji reply...
As per the query and As per the above said section the place supply is recipient of service. Hence GST chargeable as CGST and SGST...
As per the query and As per the above said section the place supply is recipient of service. Hence GST chargeable as CGST and SGST...
Sir,Although supplier mention igst in invoice (also mention gst payable under Rcm) we are creat liablity as cgst @ 2.5%&sgst @ 2.5%
Supplier can't charge (or note) GST in his bills if he is not registered under GST...
Sir, Transporter & Receipant both are registered person in two different state.
Then IGST is applicable if transporter registered under GST...
1.Is there any impact if we paid under Rcm or forward charges.
2. Or in the above transaction Pos is inter state, igst applicable and we also have to pay igst as RCM.
2. Or in the above transaction Pos is inter state, igst applicable and we also have to pay igst as RCM.
If transporter can't charge GST in his bills and also they are noted as "GST PAYABLE UNDER RCM" then it's not a Forward Charge. In this case recipient will be pay tax under rcm basis...
Yes... IGST will be pay if the above said transporter is registered in Gujarat and supply made to Telangana...
Yes... IGST will be pay if the above said transporter is registered in Gujarat and supply made to Telangana...
Thank you sir.
You are welcome
GTA opts for the 12 % rate then forward charge is applicable
BUT
if GTA opts for the 5% rate then RCM is applicable subject to conditions .
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