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RCM on transportation ??

vikram kerekar (1241 Points)

21 December 2019

how much RCM on transportation 5%
yaa 18% and we get itc both yaa only 18 %. pls gadi me ..

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8 Replies

CA Priyanshu Shah (Proprietor) (28 Points)
Replied 21 December 2019

If supplier is not charging GST on invoice
RCM 5 % to be paid by recipient and take itc .
note : even if supplier charging GST @ 5% on invoice , recipient needs to discharge his liability by paying RCM .

if supplier charging GST 12% on invoice then recipient can take itc of 12 %
as if it is normal purchase transaction

CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13531 Points)
Replied 21 December 2019

5% on reverse charge basis and 12% on forward charge basis.

vikram kerekar (1241 Points)
Replied 21 December 2019

I am talking about freight and transportation which we have paid separately just like goods send by transport and transporter give bill without get that amt paid to transporter on that amt how mutch % we have paid RCM.

SOWJANYA M (840 Points)
Replied 21 December 2019

On frieght amount you have to calculate 5%
if frieght amount is 1000 you have to pay RCM of Rs.50 (under igst. if the transporter GSTN is local, then Rs.25 cgst 25 sgst)
can claim the same during payment month itself

RAJA P M ("Do the Right Thing...!!!") (127150 Points)
Replied 21 December 2019

@ Mr Vikram Kerekar.,

Ask Clearly Your query At the time of asking here. Bcoz, We can't find out what is in Your exact query/thought/mind....

As per Your query if it's transportation or freight and received from GTA then rcm applicable @ 5% tax.
It it's from other GTA then rcm not applicable. We have many times discussed the topic in CCI...

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 22 December 2019

Yes ... Mr Raja Ji is correct , If transportation services provided by GTA , as per Notification 13/2017 CT (R) , RCM is applicable @ 5%. (Make sure that GTA has not Charge 12% , then RCM is not Required)

vikram kerekar (1241 Points)
Replied 02 January 2020

Sir, if 5% RCM is charged on GTA, would i be able to claim the same as ITC set-off?
Coz , we have been charging 18% RCM on all transportation charges so far.