RCM related matter

RCM 257 views 3 replies
my gst registration is under composite scheme and i purchase goods from out side of state. now my queries is I am liable to pay gst on transportation charges under rcm.
Replies (3)
If GTA transpoter has charged gst @ 12% on his invoice, then no need to pay gst under RCM.
But if no gst has charged on invoice then you have to pay gst under RCM @ 5% irrespective of the fact that you have obtained regular registration or under composition scheme.
Also, since you have a registration under composition scheme then you will not be able to claim the ITC of gst which you have paid under RCM.
Yes..if You are liable
If the GTA is a Registered Person and opted to pay Tax under Forward Charge Mechanism @ 12%, then no need to pay GST on RCM basis.

But if not charged 12%, then you are liable to pay Tax @ 5% under Reverse Charge Mechanism ( RCM ) u/s 9(3) of the CGST Act 2017.

And since you are a Composition Scheme Dealer, you are not eligible to claim ITC on your inputs by virtue of Section 10(4) read with Section 17(5)(e) of the CGST Act 2017.

Warm Regards.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register