RCM ON TRANDPORT

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accountant
519 Points Posted on 02 June 2020

Dear sir,

please suggest that i need to pay RCM under CGST/SGST or IGST in following situations.

i am manufacturer in Gujarat & purchase good from Tamilnadu. and we pay RCM on transportation

Situation 1- Transporter registered office is in Tamilnadu & also  branch office in Gujarat.

Situation 2- Transporter registered office is in Tamilnadu & no  branch office in Gujarat.

Thanks in advance.

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On 02 June 2020 at 10:22 Report
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Quick Summary
This discussion clarifies whether to pay CGST/SGST or IGST under Reverse Charge Mechanism (RCM) for transportation services. The key factor is the place of supply and where the service is received. If the transporter's branch office in Gujarat issues the bill, CGST/SGST applies. However, if the bill originates from Tamil Nadu, IGST is generally applicable, especially when the recipient is registered in Gujarat and the supply involves different states.

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CA IN PRACTICE
94 Points Posted on 02 June 2020

In my opinion in both the cases IGST need to be pay as 

place of supply- Gujrat

Location of recipient -Tamilnadu

both are in different states so IGST will be charged

and existence of branch office doesn't affect this.

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On 02 June 2020 at 11:53
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accountant
519 Points Posted on 02 June 2020
Dear Swati, in case of supply of service, place of supply is where u receive the service and in this case i m receiving the service in Gujarat. assesse registered in Gujarat receive service in Gujarat. so i need to pay CGST/SGST?
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On 02 June 2020 at 15:26
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GST Practitioner
55067 Points Posted on 03 June 2020
Dear Yash

As per Section 12(8) of IGST Act , POS will be location of Recepeint if he is registered.

1. If you got the bill from Branch (Gujarat) , then it's CGST/SGST attracts , but when the bill is Raised from Tamil Nadu then IGST is applicable.

2. IGST Applicable.
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On 03 June 2020 at 00:51
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CA IN PRACTICE
94 Points Posted on 03 June 2020

Yes Agree with Mr Pankaj.

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On 03 June 2020 at 11:19

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